Bank of America is creating an environmental banking group to finance conservation measures and global warming initiatives, according to comments made on Tuesday by the bank’s chief executive, Kenneth Lewis.
Speaking to the North Carolina Emerging Issues Forum in Raleigh, North Carolina, Lewis said the group will begin operations in the coming months, led by Richard Cohen, head of environmental strategic investments.
In March 2007, Bank of America said it plans to invest $20 billion over the next 10 years to reduce global warming and support environmentally-friendly practices.
"Our $20 billion initiative isn’t charity by any stretch. We expect an attractive risk-adjusted return on this capital," Lewis said. "It represents the future, and a tremendous business opportunity. We believe it’s what our customers and clients need us to do to support them."
Lewis also urged Congress to create a cap-and-trade program for carbon dioxide emissions.
He said the Charlotte, North Carolina bank, which is the second largest in the U.S. is also considering ways to lease residential solar panels to homeowners, if federal incentives are put into place. Though he noted that Bank of America has yet to not yet "found the right way to participate" in that market.
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