The Administration’s clean energy plan is under threat because of the Fed's proposed capital requirement changes, which would make it more expensive for banks to invest in clean energy, according to POLITICO.
"The implication is a massive reduction in the amount of capital that’s available to decarbonize our energy system and make investments in cheaper energy assets," said Rep. Sean Casten (D-Ill.).
The renewable industry relies significantly on large lenders for these developments—last year, banks and other backers invested $19 billion last year in projects like solar and wind power.
Since 2007, the largest U.S. banks have more than tripled the amount of capital they hold. Further, Federal Reserve Chair Powell stated as recently as two weeks ago that banks are strong and well capitalized: "We've benefited from a very strong, well capitalized banking system that’s much better at managing its risks than the one that entered the global financial crisis."
U.S. banks have proven their resilience. Americans can't afford to lose investments in renewable energy.