1. Short title This Act may be cited as the Fossil Free Finance Act of 2023 . 2. Alignment of financed emissions with science-based targets The Bank Holding Company Act of 1956 ( 12 U.S.C. 1841 et seq. ) is amended by adding at the end the following: 15. Alignment of financed emissions with science-based targets (a) Definitions In this section: (1) Carbon offsets—The term carbon offsets means an emissions reduction or removal of greenhouse gases in a manner calculated and traced for the purpose of offsetting an entity’s greenhouse gas emissions. (2) Covered bank holding company The term covered bank holding company means a bank holding company with total consolidated assets not less than $50,000,000,000. (3) Deforestation risk commodities The term deforestation risk commodities means globally traded goods and raw materials— (A) that originate from natural forest ecosystems— (i) directly from within forest areas; or (ii) from areas previously under forest cover; and (B) the extraction or production of which contributes significantly to the conversion of natural forest to agriculture, tree plantation, or other nonforest land use. (4) Financed emissions The term financed emissions means, with respect to a covered bank holding company, and any nonbank financial company supervised by the Board in accordance with section 113 of the Financial Stability Act of 2010 ( 12 U.S.C. 5323 ), the greenhouse gas emissions of such company, expressed in metric tons of carbon dioxide equivalent, attributable to investment in, or the providing of financial services to, another company or project of another company, including— (A) investments in a debt or equity investment in such another company or the assets of such another company; (B) project finance investment; (C) underwriting; (D) syndication or securitization of loans or asset-backed securities; (E) derivative transactions related to financing or hedging