Bank of America joins the “Carbon Principles” the same day CEO Ken Lewis wins “Fossil Fool of the Year”

Talk about bad timing for Bank of America.

On April 1, they received NRDC’s award for their NYC green skyscraper and (not so) bold environmental commitments (case in point: their commitment to reduce the carbon footprint of their utilities portfolio by 7% over 4 years: the actual reduction was only 2%).

On the same day, RAN, Energy Action and Co-Op America awarded their CEO Ken Lewis “Fossil Fool of the Year” and Rising Tide activists lock down on their Copley Square branch in Boston.

If they are such a “green” bank, why are they under constant scrutiny? Maybe it has something to do with the billions they funnel into the coal industry.

No matter how many skyscrapers they build or awards they receive, they won’t be truly environmentally conscious as long as they fund massive carbon footprints of coal and oil.

Bank of America Adopts the Carbon Principles

NEW YORK, April 2, 2008 — Bank of America plans to adhere to the Carbon Principles in order to assess carbon-related risks in project financing.

Developed by Citi, JPMorgan Chase and Morgan Stanley, the Carbon Principles were designed to help lenders understand the regulatory and financial risks of greenhouse gas emissions when financing utility-sector projects, such as coal-fired power plants. The banks announced a few weeks ago their intent to use the guidelines to evaluate projects that involve public utilities , not only investor-owned utilities.

“The Carbon Principles are critical as we work to secure a more sustainable energy future,” said Bank of America CEO Kenneth Lewis. “It is my hope that these principles, when combined with Bank of America’s commitment to assess the cost of carbon in our risk and underwriting process, will enable us to better evaluate the business models of utility sector companies and, ultimately, help them move to cleaner technologies in the future.”

Bank of America said it also has a policy against financing projects that threaten primary moist tropical forests, certain endangered forests and companies that engage in illegal logging.

Lewis announced the bank’s adoption of the Carbon Principles Tuesday night at a gala in which the company and mayor of New York City were honored by the Natural Resources Defense Council.

The bank’s project financing history, however, has also been the subject of criticism. Also on Tuesday, for instance, Lewis was named the “Fossil Fool of the Year” in an online contest sponsored by Rainforest Action Network, Energy Action Coalition and Co-op America.

Lewis was given the award because of Bank of America’s support for past coal projects: The groups say the bank is a top financial backer of mountaintop coal mining and new coal-fired power plants.