From the Daily Caller News Foundation

By David Blackmon

The chances of achieving the goal of net-zero by 2050 are basically net zero

Just a few years ago, ESG was all the rage in the banking and investing community as globalist governments in the western world focused on a failing attempt to subsidize an energy transition into reality. The strategy was to try to strangle fossil fuel industries by denying them funding for major projects, with major ESG-focused institutional investors like BlackRock and State Street, and big banks like J.P. Morgan and Goldman Sachs leveraging their control of trillions of dollars in capital to lead the cause.

But a funny thing happened on the way to a green Nirvana: It turned out that the chosen rent-seeking industries — wind, solar and electric vehicles — are not the nifty plug-and-play solutions they had been cracked up to be.

Even worse, the advancement of new technologies and increased mining of cryptocurrencies created enormous new demand for electricity, resulting in heavy new demand for finding new sources of fossil fuels to keep the grid running and people moving around in reliable cars.

In other words, reality butted into the green narrative, collapsing the foundations of the ESG movement. The laws of physics, thermodynamics and unanticipated consequences remain laws, not mere suggestions.

Making matters worse for the ESG giants, Texas and other states passed laws disallowing any of these firms who use ESG principles to discriminate against their important oil, gas and coal industries from investing in massive state-governed funds. BlackRock and others were hit with sanctions by Texas in 2023. More recently, Texas and 10 other states sued Blackrock and other big investment houses for allegedly violating anti-trust laws.

As the foundations of the ESG movement collapse, so are some of the institutions that sprang up around it. The United Nations created one such institution, the “Net Zero Asset Managers Initiative,” whose participants maintain pledges to reach net-zero emissions by 2050 and adhere to detailed plans to reach that goal.

The problem with that is there is now a growing consensus that a) the forced march to a green energy transition isn’t working and worse, that it can’t work, and b) the chances of achieving the goal of net-zero by 2050 are basically net zero. There is also a rising consensus among energy companies of a pressing need to prioritize matters of energy security over nebulous emissions reduction goals that most often constitute poor deployments of capital. Even as the Biden administration has ramped up regulations and subsidies to try to force its transition, big players like ExxonMobil, Chevron, BP, and Shell have all redirected larger percentages of their capital budgets away from investments in carbon reduction projects back into their core oil-and-gas businesses.

The result of this confluence of factors and events has been a recent rush by big U.S. banks and investment houses away from this UN-run alliance. In just the last two weeks, the parade away from net zero was led by major banks like Goldman Sachs, Morgan Stanley, Citigroup, Bank of America, Wells Fargo, and, most recently, JP Morgan. On Thursday, the New York Post reported that both BlackRock and State Street, a pair of investment firms who control trillions of investor dollars (BlackRock alone controls more than $10 trillion) are on the brink of joining the flood away from this increasingly toxic philosophy.

In June, 2023, BlackRock CEO Larry Fink made big news when told an audience at the Aspen Ideas Festival in Aspen, Colorado that he is “ashamed of being part of this [ESG] conversation.” He almost immediately backed away from that comment, restating his dedication to what he called “conscientious capitalism.” The takeaway for most observers was that Fink might stop using the term ESG in his internal and external communications but would keep right on engaging in his discriminatory practices while using a different narrative to talk about it.

But this week’s news about BlackRock and the other big firms feels different. Much has taken place in the energy space over the last 18 months, none of it positive for the energy transition or the net-zero fantasy. Perhaps all these big banks and investment funds are awakening to the reality that it will take far more than devising a new way of talking about the same old nonsense concepts to repair the damage that has already been done to the world’s energy system.

David Blackmon is an energy writer and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.

From the Brownstone Institute

By  Laura Rosen Cohen

It wasn’t that long ago that America’s strongest and most important export was American culture and the global dissemination of the American Dream. From movies to music, from blue jeans to drive-in movies, and from fast food to fashion, there wasn’t a single country in the world or a single cohort of teenagers and young adults that didn’t want what America was offering.

Unfortunately, throughout the progression of the Vietnam War, American culture started to cannibalize itself. The anti-war, hippie, and protesting counterculture took the reins. American cultural institutions and artists pivoted away from patriotism and moved toward anti-Establishment and anti-Western positions for a variety of reasons, both ideological and financial.

Protest became the foundational position of a generation of artists, musicians, and thinkers. As a result, America’s most powerful civil export was completely defenestrated. The left took ownership of American culture and rebellion. And since then, the American left has adopted an increasingly aggressive and metastasizing woke ideology. The result has been the near complete ideological capture of most of American civil society.

Undeniably, there has been a near ideological capture of public education, public health administration (as evidenced by the Covid years), the legacy media, and the judiciary to name a few spheres of DEI influence. Woke ideology has arguably been the most noxious and dangerous export that America has ever sent out into the world and it didn’t seem like there was an end in sight.

But then, remarkably, in November 2024, America rolled out a blockbuster, the likes of which have never been seen before. It was the greatest comeback story in American history: The Return of President Trump. And in an instant, faster than a speeding bullet, faster than you could sing a chorus of YMCA, led by President Trump, American politics and corporate America began a slow and steady retreat from DEI policies.

These toxic notions have not only poisoned civic life in America and throughout the Western world but have also resulted in public policy decisions that have resulted in catastrophic loss of life and property. The apex of this policy disaster can clearly be seen within the raging blaze of fire in Los Angeles and in all the DEI policies that led to a Dante’s inferno in America. Los Angeles, where the Mayor was in Ghana  when disaster hit. Where there was no water in the hydrants, the infrastructure was crumbling, and where diversity was the policy priority for the LAFD and where $1 million of civil service salary buys precisely three woke hires named Kirsten, including one Kirsten who says it’s your fault if you end up in a fire, and where the Governor of California prioritized fish over humans.

Over the past several decades large swaths of corporate North America were bullied by a loud and vocal woke minority into adopting some of the most aggressive and ridiculous DEI and ESG policies on earth. Some corporate converts set their compasses to DEI like a north star and flopped spectacularly. Many, like Bud Light, are still licking their wounds from their predictable and avoidable “Go woke, go broke” fiasco  while other companies like Jaguar remained impenetrably thick-skinned and were rightly ridiculed and mocked for brand murder, dare we call it brandicide?

But now, the vibe shift is impossible to miss or ignore. In recent weeks, we have seen President Trump set his sights on DEI in the military and American corporations like Apple and Volvo starting to sing from the new hymn sheet, along with retail giants like Costco. 

And incredibly, this was just the tip of the anti-woke iceberg. In early January, following an earlier, fall visit by Mark Zuckerberg to Mar-a-Lago, Facebook announced that it would be discontinuing its third-party “fact-checkers” (i.e. “censorship”) program and cutting its DEI hiring initiatives. And now, they are dropping like flies! McDonald’s and Amazon are the latest to axe their DEI programs.

Unfortunately, the astonishing and heartbreaking scenes in Los Angeles are a direct result of abject mismanagement of the city and state and exacerbated by unqualified hires and anti-human, anti-common sense policies that should never, ever have been permitted to escape the faculty lounges, let alone leap into civic life. The woke petri dish has already created colossal havoc in every element of civil society in America and in much of the rest of the Western world. Deep reflection and immediate change are needed.

If the deep blue voters of California recognize the folly of their choices and the destruction-driven bent of their elected leaders, if they demand answers and repudiate their woke ways, perhaps there is hope. For the good of the country, and indeed the entire Western world, America’s most poisonous export must be put to pasture once and for all.

Author

Laura Rosen Cohen

Laura Rosen Cohen is a Toronto writer. Her work has been featured in The Toronto Star, The Globe and Mail, National Post, The Jerusalem Post, The Jerusalem Report, The Canadian Jewish News and Newsweek among others. She is a special needs parent and also a columnist and the official In House Jewish Mother of internationally best-selling author Mark Steyn at SteynOnline.com