The global net zero finance cartel is unraveling – is Watt shocked?

From Manhattan Contrarian

Francis Menton

Less than three weeks ago, on December 23, I noted in an optimistic article about the possible demise of the green energy fantasy that two of the largest U.S. banks had just withdrawn from a group called the Net Zero Banking Alliance. The two companies are Goldman Sachs and Wells Fargo. These two banks, along with many others, including all the largest banks, have joined the NZBA since it was formed in 2021 with the support of the United Nations. I will save the planet by depleting all investment capital in hydrocarbons while redirecting the funds into the “green” energy transition. Now, not long after Donald Trump was re-elected, two of the biggest banking giants have decided to call it quits. Does this show that the zero-carbon green energy fantasy is losing its grip?

In just 19 days since the post was published, the wave of resignations from the NZBA and related groups has turned into an avalanche. In the blink of an eye, the once-serious threat that hydrocarbons could be wiped out by a collective investor boycott has all but disappeared.

The latest developments will be detailed later in this article. But first, let's learn a little about the history of the NZBA and the associated alphabet soup of do-gooders.

In 2021, the United Nations’ major climate conference (the “Conference of the Parties” or “COP”) will be held in Glasgow, Scotland. Although the Conference of the Parties is usually held annually, it did not take place in 2020 due to the coronavirus pandemic. After a one-year hiatus, COP-26 was finally held from October 31 to November 13, 2021. -26 is the top priority for all COPs. A group of aspiring petty tyrants within the UN bureaucracy, fresh off their colossal successes in the COVID-19 pandemic, are ready to flex their new muscles in the climate arena.

In the months leading up to the Glasgow conference, the United Nations came up with a bright idea: organize all the world’s big financial institutions into a cartel to channel their capital toward an “energy transition” away from hydrocarbon fuels. To achieve this, an entity called the Glasgow Financial Alliance for Net Zero (GFANZ) was established in April 2021. According to its website:

The Glasgow Financial Alliance for Net Zero (GFANZ) brings together leading financial institutions and other financial services industry players who have each decided to support the goal of mobilizing capital and addressing the barriers companies face in scaling up decarbonisation. . . . GFANZ was established to establish a forum to address and promote action on industry-wide challenges and opportunities associated with the net zero transition.

The driving force behind the initiative appears to be a man named Mark Carney. Have you heard of him? Here is his photo from the GFANZ website:

Carney is a native Canadian and a towering figure in the world of central banks: He served as governor of the Bank of Canada from 2008 to 2013, and then quickly rose to become governor of the Bank of England from 2013 to 2020 (the first non-Chinese to hold this position). British). Along the way, Carney became one of the top evangelists of the religion of climate alarm. After leaving the Bank of England, he jumped to the United Nations, where he was given the grandiose title of “Special Envoy for Climate Action and Finance.” According to its website, “GFANZ was launched in April 2021 by Mark Carney, the UN Special Envoy for Climate Action and Finance and the COP26 President, to accelerate the global economic transition to net zero.”

Carney becomes chairman of GFANZ. By the time COP-26 convenes in November 2021, Carney has also hired the ultimate climate hypocrite Mike Bloomberg (one of seven chambers and eight private jets) to serve as co-chair. The two still serve as co-chairs, according to the GFANZ website.

GFANZ subsequently played an important role in organizing a series of affiliated groups divided by industry sectors. Of relevance to today's post are the NZBA (which was established at the same time as GFANZ in April 2021) and the net zero asset management scheme NZAMI, which actually launched earlier in December 2020.

Both the NZBA and NZAMI quickly and successfully recruited almost all the big names in their respective industries to their membership. The mission statements of these organizations are written in a bureaucratic style that is difficult to understand, but at least it is clear that the idea is to stop financing the hydrocarbon fuel industry. For example, the first item of NZAB’s “Statement of Commitment”:

transition The operating and attributed greenhouse gas (GHG) emissions of its loans and investment portfolio are aligned with a path to net zero emissions by 2050 or earlier.

Which brings me to the latest development: Goldman Sachs and Wells Fargo exited NZAB in early December, quickly opening the door for other major players to exit. On December 31, Reuters reported that Citibank and Bank of America had just withdrawn from NZAB. Morgan Stanley announced its withdrawal on January 2, and JPMorgan Chase withdrew on January 7.

Then, just yesterday, BlackRock, the country's largest asset manager, exited NZAMI. Among the three major asset managers, Vanguard, another one, has exited in 2022.

Meanwhile, if you're wondering what happened to Mark Carney, he appears to be the leading candidate to lead Canada's Liberal Party now that Justin Trudeau has resigned. CBC said in an article yesterday that Carney had the support of about 30 Liberal MPs. That means Carney could become Canada's next prime minister if the Liberals win the election expected to be held sometime this year. The Liberals, on the other hand, appear to be heading for one of the most decisive defeats in Canadian history, according to the latest polls. The poll, conducted by CBC News on January 6, concluded that if an election were held that day, the Conservatives would win about 227 seats to the Liberals' 44 (out of 338 seats in Parliament).

So Carney may have an opportunity to test how persuasive a climate warning message is to Canadian voters. So far, things aren't looking good.

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