Business
US firms like BlackRock are dropping their climate obsession while Europe ramps theirs up
Larry Fink on stage at the 2022 New York Times DealBook on November 30, 2022. in New York CityPhoto by Thos Robinson/Getty Images for The New York Times
From LifeSiteNews
By David James
As U.S. firms such as BlackRock and JPMorgan Chase continue to distance themselves from the ESG and ‘climate change’ agendas, Europe has been moving aggressively in the opposite direction, suggesting a rift is forming on the global economic landscape.
The climate change debate is usually thought to be focused on scientific analyses of the earth’s atmosphere. But that is only what is on the surface. It is also very much about money and politics and there has been a big shift that looks likely to threaten support for the net zero initiative. It may lead to a deep economic and political rift between the U.S. and Europe.
Estimates of the cost of decarbonizing the economy by 2050 have varied, but it is generally agreed that it is a financial bonanza. Goldman Sachs is at the low end with a modest $80 trillion while Bank of America estimates an extraordinary $275 trillion, about 10 times the current value of the U.S. stock market.
The finance sector, dizzy with the prospect of a huge investment opportunity, imposed a metric on corporations called Environmental, Social and Governance (ESG), a mechanism for demanding that companies go down the net zero route – and also comply with diversity equity and inclusion (DEI) requirements, the “S” part of ESG. Corporations that did not cooperate were threatened with a loss of support in the market and lower relative share prices.
That trend is starting to reverse. BlackRock, JPMorgan Chase, and State Street recently exited from Climate Action 100+, a coalition of the world’s largest institutional investors that pledges to “ensure the world’s largest corporate greenhouse gas emitters take necessary action on climate change.” The passive fund Vanguard, the world’s second largest, exited over a year ago.
These four fund managers oversee assets of about $25 trillion, which is approximately a quarter of the entire funds under management in the world.
They are changing direction for two reasons. First, there was an implicit bargain with ESG, whereby compliant companies would not only get to save the environment but also get to see their share prices outperform non-compliant companies. It is not turning out that way. In fact, better returns have come from investing against ESG-compliant companies.
More compellingly, 16 conservative state attorneys general in the U.S. have demanded answers from BlackRock’s directors regarding the Climate Action and ESG initiatives. Other fund managers and banks have also attracted unwanted scrutiny.
Nothing concentrates the mind of fund managers more than the prospect of clients withdrawing their funds – in this case state government pension money. Larry Fink, chief executive of BlackRock, is now saying he does not think it is helpful to use the term ESG, having been one of the most aggressive advocates. In his 2022 letter to CEOs he was issuing veiled threats to companies not complying with ESG. In 2024, he omitted the term entirely.
Meanwhile in Europe, very different choices are being made. The European Union (EU) is looking to impose sustainability reporting standards on all medium and large businesses. The intention is to have European companies set up a new accounting system by the end of the decade. Rather than recording financial transactions, it will instead aggregate data related to climate, pollution, especially carbon dioxide emissions, biodiversity and social issues.
As one (anonymous) analyst writes: “It is a very detailed control system for European companies where the European Commission can, in the future, dictate anything it wants – and punish for any violations any way it wants. Apart from the crazy regulatory load, this initiative can only be seen as a direct seizure of operational control of European companies, and thereby the European economy.”
So, while the U.S. looks to restore an unsteady version of capitalism, Europe is heading towards some kind of climate-driven socialism.
The EU plan seems to be to eventually direct their banks’ lending, which would radically undermine the region’s free-market system and establish something more like communist-style centralized control.
This does not mean U.S. governments and bureaucrats will stop pushing their climate agenda. A court case brought by the city of Honolulu, for example, is one of several attempts to bankrupt the American energy industry. But when the big institutional money changes direction then corporations and governments eventually follow.
The situation is further complicated by the emergence of the expanded BRICS alliance, which will soon represent a bigger proportion of the world economy than the G7. Saudi Arabia, Iran, United Arab Emirates, Ethiopia and Egypt will be added to the original group of Brazil, Russia, India, China and South Africa.
The BRICS nations will not allow the West’s climate change agenda to reshape their polities. Most of them are either sellers or heavy consumers of fossil fuels. Both India and China are increasing their use of coal, for instance, which makes Western attempts to reduce emissions largely pointless.
The promise that hundreds of trillions of investment opportunities would come from converting to net zero was always just a financial projection, mere speculation. The scale of transiting to a decarbonized economy would be so enormous it would inevitably become a logistical nightmare, if not an impossibility.
Energy expenditure represents about an eighth of the world’s GDP. Oil, natural gas and coal still provide 84 percent of the world’s energy, down just two per cent from 20 years ago. Production of renewable energy has increased but so has overall consumption. Oil powers 97 percent of all transportation.
Relying solely on renewable energy was never realistic and now that the financial dynamic is changing the prospects of achieving net zero have become even more remote. As the finance website ZeroHedge opines: “Both the DEI and ESG gravy trains on Wall Street are finally coming to an unceremonious end.” Financial markets continually get seduced by fads; the ESG agenda is starting to look like yet another example.
Business
Storm clouds of uncertainty as BC courts deal another blow to industry and investment
From the Fraser Institute
By Tegan Hill and Jason Clemens
Recent court decision adds to growing uncertainty in B.C.
A recent decision by the B.C. Court of Appeal further clouds private property rights and undermines investment in the province. Specifically, the court determined British Columbia’s mineral claims system did not follow the province’s Declaration on the Rights of Indigenous Peoples Act (DRIPA), which incorporated the United Nations Declaration on the Rights of Indigenous Peoples (UNDRIP) into law.
DRIPA (2019) requires the B.C. provincial government to “take all measures necessary to ensure the laws of British Columbia are consistent with the Declaration,” meaning that all legislation in B.C. must conform to the principles outlined in the UNDRIP, which states that “Indigenous peoples have the right to the lands, territories and resources which they have traditionally owned, occupied or otherwise used or acquired.” The court’s ruling that the provincial government is not abiding by its own legislation (DRIPA) is the latest hit for the province in terms of ongoing uncertainty regarding property rights across the province, which will impose massive economic costs on all British Columbians until it’s resolved.
Consider the Cowichan First Nations legal case. The B.C. Supreme Court recently granted Aboriginal title to over 800 acres of land in Richmond valued at $2.5 billion, and where such aboriginal title is determined to exist, the court ruled that it is “prior and senior right” to other property interests. Put simply, the case puts private property at risk in BC.
The Eby government is appealing the case, yet it’s simultaneously negotiating bilateral agreements that similarly give First Nations priority rights over land swaths in B.C.
Consider Haida Gwaii, an archipelago on Canada’s west coast where around 5,000 people live—half of which are non-Haida. In April 2024, the Eby government granted Haida Aboriginal title over the land as part of a bilateral agreement. And while the agreement says private property must be honoured, private property rights are incompatible with communal Aboriginal title and it’s unclear how this conflict will be resolved.
Moreover, the Eby government attempted to pass legislation that effectively gives First Nations veto power over public land use in B.C. in 2024. While the legislation was rescinded after significant public backlash, the Eby’s government’s continued bilateral negotiations and proposed changes to other laws indicate it’s supportive of the general move towards Aboriginal title over significant parts of the province.
UNDRIP was adopted by the United Nations in 2007 and the B.C. Legislature adopted DRIPA in 2019. DRIPA requires that the government must secure “free, prior and informed consent” before approving projects on claimed land. Premier Eby is directly tied to DRIPA since he was the attorney general and actually drafted the interpretation memo.
The recent case centres around mineral exploration. Two First Nations groups—the Gitxaala Nation and the Ehattesaht First Nation—claimed the duty to consult was not adequately met and that granting mineral claims in their land “harms their cultural, spiritual, economic, and governance rights over their traditional territories,” which is inconsistent with DRIPA.
According to a 2024 survey of mining executives, more uncertainty is the last thing B.C. needs. Indeed, 76 per cent of respondents for B.C. said uncertainty around protected land and disputed land claims deters investment compared to only 29 per cent and 44 per cent (respectively) for Saskatchewan.
This series of developments have and will continue to fuel uncertainty in B.C. Who would move to or invest in B.C. when their private property, business, and investment is potentially at risk?
It’s no wonder British Columbians are leaving the province in droves. According to the B.C. Business Council, nearly 70,000 residents left B.C. for other parts of Canada last year. Similarly, business investment (inflation-adjusted) fell by nearly 5 per cent last year, exports and housing starts were down, and living standards in the province (as measured by per-person GDP) contracted in both 2023 and 2024.
B.C.’s recent developments will only worsen uncertainty in the province, deterring investment and leading to stagnant or even declining living standards for British Columbians. The Eby government should do its part to reaffirm private property rights, rather than continue fuelling uncertainty.
Business
Conservative MP warns Liberals’ national AI plan could increase gov’t surveillance
From LifeSiteNews
Conservative MP Leslyn Lewis raised concerns about the Liberals’ major investment in AI, which could lead to digital ids and loss of freedoms.
Conservative MP Leslyn Lewis is sounding the alarm over the Liberals’ nearly billion-dollar AI infrastructure investment, which could lead to digital IDs
In a December 2 post on X, Lewis raised concerns over the Liberals’ 2025 budget, which funds a $925.6 million “Sovereign Canadian Cloud” and national AI compute infrastructure at the same time as the Liberals are pushing digital identification on Canadians.
“Who audits the algorithms behind government’s new digital systems?” Lewis challenged. “What protections exist for Canadians in this new infrastructure? Who builds it? Who controls it? Who owns the data?”
“Good technology isn’t the issue, our freedoms, surveillance and good accountable governance in a digital era are the real issues,” she warned.
“Digital infrastructure is power, and it must never be implemented in secrecy or without parliamentary scrutiny,” Lewis declared.
Despite spending nearly one billion taxpayer dollars on the project, Prime Minister Mark Carney provides surprisingly few details on how the infrastructure will work and what its purpose will be.
“Budget 2025 proposes to provide $925.6 million over five years, starting in 2025-26, to support a large-scale sovereign public AI infrastructure that will boost AI compute availability and support access to sovereign AI compute capacity for public and private research,” the budget read.
“The investment will ensure Canada has the capacity needed to be globally competitive in a secure and sovereign environment,” it continued.
Alarmingly, the funding comes at the same time as Liberals are moving forward with digital identification systems, despite warnings that they will infringe on Canadians freedoms.
In November, as reported by LifeSiteNews, Liberals moved ahead with digital identification for anyone seeking federal benefits, including seniors on Old Age Security.
Additionally, the Canadian government hired outside consultants tasked with looking into whether or not officials should proceed with creating a digital ID system for all citizens and residents.
Per a May 20 Digital Credentials Issue memo, and as noted by Blacklock’s Reporter, the “adoption” of such a digital ID system may be difficult.
Canada’s Privy Council research from 2023 noted that there is strong public resistance to the use of digital IDs to access government services.
Nonetheless, Conservative leader Pierre Poilievre sounded the alarm by promising to introduce a bill that would “expressly prohibit” digital IDs in Canada.
Critics have warned that the purpose of such IDs is actually to centralize control over citizens. This opinion seems to be mirrored by the general public, with a Bank of Canada survey finding that Canadians are wary of a government-backed digital currency, concluding that a “significant number” of citizens would resist the implementation of such a system.
Digital IDs and similar systems have long been pushed by globalist groups like the World Economic Forum, an organization with which Carney has extensive ties, under the guise of ease of access and security.
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