Every summer and fall, Southern communities brace themselves for the challenges posed by hurricane season. From Florida to the Carolinas, families engage in rituals of preparation and prayer, and yet, the storms are undeniably intensifying. Flooding has become more severe, and the economic repercussions are mounting each year. In 2024 alone, the U.S. has experienced 27 distinct weather and climate-related disasters, resulting in a staggering $182.7 billion in damages—one of the costliest years on record.
Having previously served as a Republican lawmaker for districts in Florida and South Carolina, I can attest that climate change is far from a distant issue. Miami is witnessing rising tides, while North Carolina has faced intense flooding. The energy grid struggles under unprecedented heat. These are not abstract threats; they are real risks reshaping our economy, insurance sectors, and communities.
Conservatives need to reclaim the narrative on climate change. Unfortunately, the conversation is often polarized. On one end, there are leftist mandates and federal interventions that can stifle innovation. On the other side, some right-leaning voices wield government power against private companies, penalizing them for evaluating the economic impacts of climate-related risks.
Texas Attorney General Ken Paxton is pursuing a lawsuit against financial firms like BlackRock, State Street, and Vanguard, alleging they have formed “investment cartels” by factoring climate risks into their strategies, effectively conspiring against coal producers and traditional energy entities. However, this portrayal misrepresents the situation. In fact, coal production has seen an uptick during the timeline Paxton identifies. What he deems conspiracy is merely the standard decision-making process of trustees. When investors assess risks and adjust their portfolios, it reflects a healthy market—not a cartel.
Understanding risks associated with hurricanes and regulations is essential for responsible investing. If asset managers recognize that certain coastal properties are more prone to flooding or that insurance costs are surging in specific areas, adjusting their strategies is not a form of capitalism gone awry; it’s about fulfilling their fiduciary duties. It’s about safeguarding portfolio values, which is, in essence, how a free market operates.
Several prominent conservative figures in Texas clearly recognize this. Rick Perry, former governor and energy secretary, has criticized Paxton’s lawsuit. His view is that weaponizing government power against investors harms the energy policies conservatives aim to support. Perry argues that rather than resorting to litigation or intimidation, the free market should dictate America’s energy security and economic resilience. Protecting the right of companies or investors to evaluate appropriate risks is crucial for true freedom.
Traditionally, conservatives have championed limited government intervention and individual liberties. However, when politicians dictate investment strategies and intimidate businesses about climate risks, they stray from these foundational principles. The essence of conservatism should be protecting the right to invest. American investors and businesses must navigate risks and opportunities to sustain competitiveness and profitability.
Across the nation, center-right voices are stepping forward. Organizations such as the Cato Institute and the National Taxpayers Union are showcasing how market-based approaches can preserve freedom, spark innovation, and prepare communities for the realities of climate change. We’re set to gather in New York City soon to discuss how conservatives can effectively address these issues moving forward.
This discourse is not about choosing between environmental protection and economic growth. It’s about harnessing American creativity to address financial risks, create opportunities, and foster resilience. Conservatives should affirm that it’s not the role of the government to dictate these matters, but rather, the market should steer how we adapt to and invest for the future.
The stakes are significant. If we yield the conversation, the public is left with a misleading dilemma: rampant government control from the left versus an equivalent force from the right. Both extremes are mistaken. Conservatives must promote freedom. Families and entrepreneurs rebuild after storms while developing clean technologies, and investors must take responsibility for risk assessment. Here in America, we must resolutely protect our freedom to invest.
