A eulogy for net-zero asset management plans – does Watt support it?

Ladies and gentlemen, please gather together for a moment of silence, or a loud laugh, to mark the premature suspension of the Net Zero Asset Management (NZAM) program. This alliance of investment giants was once the darling of “woke capitalism” and claimed to be the savior of the earth. Now it has decided to fold its tent, apparently under the weight of its own contradictions and a little push from reality.

A coalition of investment magnates turned self-styled climate change crusaders looks in tatters after suspending its activities on Monday amid a backlash against “woke” capitalism.

Plans for Net Zero Asset Management (NZAM) were rocked last week by the exit of BlackRock, the world's largest investor, according to an exclusive report by The Washington Post.

https://www.msn.com/en-us/money/other/climate-group-net-zero-asset-managers-suspends-activities-days-after-blackrock-quits/ar-BB1ro5bQ?ocid=msedgntp&pc= U531&cvid=bf7c5905139e48f18d996522bfb69b44&ei=10

NZAM is hailed as a coalition of climate-conscious asset managers committed to channeling trillions of dollars into sustainable investing. It has all the buzzwords: net zero, decarbonization, stakeholder capitalism. But as we are now seeing, even the strongest “green” coalitions can collapse when rhetoric encounters resistance.

BlackRock makes dramatic exit

Larry Fink's BlackRock, which manages $11.5 trillion, is the largest player in NZAM. But last week, BlackRock abruptly pulled back, citing “confusing” goals of the plan and growing legal and political scrutiny. Confusion? Confusion is an odd defense for an organization purportedly leading climate finance.

But let’s not kid ourselves. The real story here is not chaos; It was a political backlash. Fianna Fáil MPs have been engaged in a heated debate questioning NZAM's anti-fossil fuel stance, which they see as a threat to free market principles. For a company like BlackRock, whose fiduciary duty is to maximize returns, the last thing it needs is to be dragged into a legal and political storm.

The facade of awakening collapses

This retreat involves the exit of more than one company. NZAM’s decision to suspend its activities is a tacit admission that its ambitious vision of global decarbonization through financial engineering is built on a house of cards. It turns out that forcing investors to abandon fossil fuels – still the lifeblood of the modern economy – isn't as easy as issuing a press release.

What NZAM and its allies fail to recognize is that most of the world is not ready to trade reliable energy for expensive “green” dreams. They didn't count on backlash from those who really wanted to keep the economy functioning without destroying it.

“Awakened Capitalism” Meets Reality

The disaster also exposed the hollowness of so-called woke capitalism. While everyone is beating their chests to save the planet, NZAM and its members are quick to flee when the going gets tough. They have proven that their commitment to climate targets is conditional and a marketing gimmick rather than a principled stance.

This is a classic case of virtue signaling gone wrong. Companies like BlackRock are happy to bask in the glow of green virtues as long as it's profitable — or at least painless. But when real-world pressures mounted, from legal investigations to political challenges, these lofty ideals were quickly abandoned.

Wider implications: Lessons from overexpansion

NZAM's suspension highlights the dangers of pursuing aggressive, top-down policies without a clear understanding of economic realities or public sentiment.

The truth is, the world runs on fossil fuels, and no amount of corporate virtue signaling is going to change that overnight. Measures such as NZAM ignore the complexity of global energy needs and the fact that renewable energy is not yet ready to replace hydrocarbons on a large scale.

Even more damning, NZAM’s failure exposes the elitist arrogance of the climate movement. These financial giants think they can decide policy in their boardrooms, ignoring the voices of ordinary citizens and legislators. That arrogance is now coming back to bite them.

Final Thoughts: The Emperor Has No Clothes

NZAM’s suspension is not just a setback for one initiative but a symbolic failure of the entire climate authoritarian ideology. It’s a reminder that policies based on coercion and moral grandstanding are doomed to fail when faced with economic and political realities.

So let's drink to NZAM, not in mourning but in mockery. Its collapse is a victory for common sense and a warning to all those who seek to impose utopian visions on an uninterested world. May its demise teach the climate cartel a lesson: the road to net zero emissions is paved with good intentions and bankrupt ideology.

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