When Republicans gathered in Milwaukee two weeks ago, they platform It extolls the importance of energy but is thin on specifics: There was a vague reference to “unleashing the energy of America,” but Republicans need to aggressively combat well-intentioned but ultimately destructive environmental, social and governance policies.
It’s often said that the road to hell is paved with good intentions. Similarly, in the world of ESG activism, the road to rising greenhouse gas emissions and economic stagnation is paved with wishful thinking and willful blindness. It would be hard to find a greater gap between the lofty ideals of ESG advocates and the devastating real-world consequences of their policies.
Until ESG advocates realize the folly of the environmental movement, economic growth and quality of life in the West will decline.
Virtue-signaling ESG policies generate significant costs and transfer economic prosperity from those under ESG’s control (including the United States and its allies) to those who reject ESG’s environmental agenda (primarily economic competitors and security adversaries). Instead of exporting American-made goods and services, the United States exports American industry and emissions.
Countries that have jumped on the ESG bandwagon against fossil fuels and support renewable energy mandates will inevitably see energy prices rise. SoaringElectricity prices in the European Union Twice This is the same thing that happens in the US. And the price of electricity in the US is Twice The same phenomenon is occurring as in China. The costs of fuel and fertilizer are also showing similar trends. Rising energy costs are leading to a decline in heavy industry and other energy-intensive economic activities.
China is rapidly expanding its coal-fired power capacity, despite optimistic and unfounded reports that China’s coal-fired power generation is far superior. cleaner more Efficient The issue is the scale of production compared to the amount produced in the United States. quarter It accounts for 10% of the world’s annual carbon dioxide emissions. And the air quality in Chinese cities is Notorious.
The apparent success of reducing greenhouse gas emissions in the United States and Europe has only resulted in the relocation of energy-intensive industries to China, India and other countries with cheaper energy. Instead of expanding, American energy-intensive industries such as steel, concrete and automobiles have been put at a disadvantage relative to other countries.
Restrictive and costly ESG policies export Shifting greenhouse gas emissions to countries with cheaper energy is bad for our economy and workers, and bad for the environment because it doesn’t reduce greenhouse gas emissions, it just shifts them. U.S. policy should focus on making our industries more competitive and efficient by loosening the shackles on domestic energy development and cutting red tape.
ESG rating companies such as Sustainalytics, MSCI, and S&P Global penalize public companies that own and use fossil fuel assets such as oil and natural gas fields. These public companies receive lower ESG ratings, which in turn increases the cost of financing their operations. When these companies “divest” their fossil fuel assets, their ESG ratings improve.
But the companies that sell fossil fuel resources (either private companies or large government-backed energy companies) continue to dig them out of the ground. For example, Chevron Sold Shell sold a 75% stake in South African oil assets to Sinopec in 2017 as part of a strategy to reduce carbon emissions. But China is also squeezing those assets. This year alone, Shell has sold Announced The company said:Energy Transition Strategy.”
Similarly, B.P. Sold BP sold its significant interests in the Prudhoe Bay to Alaska oil pipeline to private company Hilcorp in 2019. The $5.6 billion deal is part of BP’s $10 billion investment plan. Divestment ProgramAnother example of a publicly traded company that has sold emissions-related assets is Hess Corporation. sale Shell sells fossil fuel assets to private company Ineos in 2021. sale Lockheed Martin sold its oil sands assets to Canadian Natural Resources in 2017. sale We launched our energy services business in 2019.
In none of these cases has greenhouse gas emissions been reduced.
As long as ESG advocates do not realize the folly of the environmental movement, Western countries will continue to experience declining economic growth and quality of life, while global greenhouse gas emissions will continue to rise. We need smart energy policies that recognize the economic impacts of renewable energy mandates and fossil fuel moratoriums.
Good intentions alone are not enough.
