Fossil Free Financing Act of 2023

The Fossil Free Financing Act of 2023 requires large banks (with over $50 billion in assets) to create and implement plans to reduce their financed emissions - greenhouse gases linked to their investments - in line with science-based climate targets. Key requirements include ending all new fossil fuel projects by January 2023, stopping thermal coal financing by 2025, eliminating all fossil fuel financing by 2030, and achieving zero financed emissions by 2050. The bill prohibits using carbon offsets in these plans and mandates banks to prioritize communities disproportionately impacted by fossil fuel dependence. Banks must submit annual plans to the Federal Reserve, which can impose penalties for noncompliance, including loss of deposit insurance. The law also expands oversight of nonbank financial firms contributing significantly to climate emissions.