The chief executive of JP Morgan has suggested that governments should seize private land to build wind and solar farms in order to meet net-zero targets.
Jamie Dimon, the longstanding boss of the Wall Street titan, said green energy projects must be fast-tracked as the window for averting the most costly impacts of global climate change is closing.
In his annual shareholder letter, Mr Dimon said: “Permitting reforms are desperately needed to allow investment to be done in any kind of timely way.
“We may even need to evoke eminent domain – we simply are not getting the adequate investments fast enough for grid, solar, wind and pipeline initiatives.”
Eminent domain is when a government or state agency carries out a compulsory purchase of private property for public use and compensates the asset holder.
The Telegraph says the proposal is unusual, especially coming from the longest-serving chief executive of a Wall Street bank, and could stir controversy as states in the US seek to crack down on seizure orders.
Bill passed
In Iowa, state legislators on Monday passed a bill that aims to protect private property owners from eminent domain use by carbon pipeline companies.
Mr Dimon said the war in Ukraine was redefining the way countries and companies plan for energy security.
He added: “The need to provide energy affordably and reliably for today, as well as make the necessary investments to decarbonise for tomorrow, underscores the inextricable links between economic growth, energy security and climate change. We need to do more, and we need to do so immediately.
“To expedite progress, governments, businesses and non-governmental organisations need to align across a series of practical policy changes that comprehensively address fundamental issues that are holding us back.
“Massive global investment in clean energy technologies must be done and must continue to grow year-over-year.”
In the UK, reforms to Solvency 2 rules are expected to unleash a wave of investment in renewable-energy projects after insurers and pension funds complained that EU-era regulations obstructed their ability to invest in infrastructure.
Tensions grow
Mr Dimon’s comments also come as tensions between investors grow about how to tackle climate change.
The banking chief added: “Polarisation, paralysis and basic lack of analysis cannot keep us from addressing one of the most complex challenges of our time. Diverse stakeholders need to come together, seeking the best answers through engagement around our common interest.
“Bolstering growth must go hand in hand with both securing an energy future and meeting science-based climate targets for future generations.”