JPMorgan (JPM.US) has updated its strategy for financing the energy transition. As the largest bank in the United States, the bank said the move will help meet a historic surge in demand while balancing energy affordability and security. Heather Zichal, who oversees the JPMorgan Center for Energy and Environment as well as sustainable development strategy, said that under this adjustment, nuclear power and power grid investments will qualify under the bank's $1 trillion green finance target. This is part of a broader effort by JPMorgan to re-examine its $2.5 trillion sustainable development goal. Zichal said in an interview: "The scale of electricity demand and infrastructure construction we are discussing is incredible, and the world needs more energy. We are a bank, and expanding the scale of financing is our responsibility." Zichal's newly expanded scope of responsibilities at JPMorgan is part of the bank's recent restructuring. The restructuring aims to further strengthen synergies between the energy financing business and the sustainable development business. She said JPMorgan remains committed to financing a diverse range of energy sources, "but at the same time, we must respond to the current situation." Zichal said that war-induced shocks to oil and gas supply, combined with the enormous energy demand from powering artificial intelligence (AI) data centers, mean that sustainable finance, like every other area of banking, needs to adjust. She said: "The rules of the game in the energy sector have completely changed. We will not formulate a strategy and then let it run on autopilot for five years. We do not do that for corporate banking and investment banking; why should we do that in sustainable development?" JPMorgan has made clear it wants to dominate electrification-related financing opportunities, including becoming the preferred lender for power grid projects. In the preface to JPMorgan's sustainability report, CEO Jamie Dimon described energy infrastructure as a key pillar of the bank's $1.5 trillion "Security and Resilience Plan." Dimon said in the report released on Wednesday: "Many initiatives that can enhance energy independence may also drive sustainable development. Initiatives such as nuclear power, energy storage and power grid modernization can strengthen system resilience while helping customers decarbonize." JPMorgan said in the report released on Wednesday that the purpose of updating its sustainable development strategy "is not to restrict our financing," but to help clients and consumers achieve their business and financial goals. The bank said that so far, it has provided $1.2 trillion in financing or financing support toward its $2.5 trillion 2030 sustainable development goal. Of that, $520 billion went to green finance projects. At the same time, JPMorgan expanded its definition of green energy to include electric vehicle charging stations, as well as zero-carbon and low-carbon power generation by so-called diversified companies. Such companies are also engaged in fossil fuel production. In addition, power networks and power grid modernization projects have also been included in the activities the bank considers eligible for green finance. When asked about the bank's commitment to reducing greenhouse gas emissions associated with its financing, Zichal said the primary goal is to "mobilize capital at scale," which is "the greatest direct contribution we can make." She said JPMorgan measures success by "how much capital we have invested for our clients and for the energy solutions the world needs." As decarbonization across the broader economy slows and the International Energy Agency (IEA) updates its widely watched net-zero emissions scenario, JPMorgan has also delayed its emissions reduction targets related to lending to high-carbon clients. JPMorgan said it is now aligning its strategy with the IEA's latest scenario. That scenario "lists 2035 as the nearest interim reference year," whereas previously the bank's focus was on 2030. According to the report released on Wednesday, there will be some overlap between JPMorgan's green financing target and its Security and Resilience Plan. The report noted that some activities that help keep the energy system safe and reliable "may also drive decarbonization of the energy system," and therefore "may be counted under both programs." Dimon said: "We also understand that energy security, affordability, resilience and sustainable development are interconnected. Advancing these goals together is essential to building a strong and competitive economy."