Yellen, BlackRock, ESGs and Net Zero: Who is really in charge of the world?

I’m concerned that the American public has no idea what’s going on and what’s coming with gas prices and food prices. I’m hoping that there are actually some lucid adults working in our government trying to keep the economy afloat. But to me it appears that global energy investors are in charge of taking away fossil fuels before we have anything to replace them.

The US government is very busy helping finance and manage the global transition to a fossil fuel free economy. Our elected and appointed officials have been coming together with the world’s top finance and business executives to create new rules for doing business based on getting the world to net zero emissions by 2050.

President Biden’s plans are starting to become reality. The first injection of the $62 billion infusion into the Dept of Energy was announced last week.

https://www.energy.gov/articles/biden-administration-launches-35-billion-program-capture-carbon-pollution-air-0

This is a ridiculous scripted video created by your government officials bragging about creating 1000 jobs in the DOE.

The Treasury, led by Janet Yellen, plans to help make this transition profitable for business and finance by using public-private partnerships. Trillions of dollars from Biden’s infrastructure plan are up for grabs for those wanting to join the green revolution.

In order to encourage companies to cooperate with the goals of the climate agenda, they will be using ESG scores based on data to rate companies business practices. ESG stands for environment, social and governance. These scores will become a method of deciding who gets funded and who doesn’t. https://money.usnews.com/investing/news/articles/what-is-an-esg-score

Yellen told attendees at G20 that investors want to invest in sustainable businesses but they need more and better data to judge the ESG of potential investment opportunities .

“We must do more, though. In order to mobilize additional investments into clean infrastructure, investors are demanding clear and comparable ESG data and metrics. Poor quality or availability of ESG data and lack of standardized ESG metrics are often cited as barriers to further deployment of sustainable finance. And lack of clear measurements also opens the door to “green washing” – that is, inflating environmental and emissions benefits to attract investors.

To improve infrastructure data quality, we are working in the G20 to develop indicators for the Principles for Quality Infrastructure Investment, or QII. As many of you know, the QII principles were endorsed during the Japanese G20 presidency in 2019, and they incorporate ESG considerations, resilience, and life cycle cost. Negotiations on QII indicators have been extensive. There are legitimate concerns over their potential impact on investment and project costs. Yet we continue to hear from private investors that consideration of ESG factors in their financing decisions has shifted from being “nice to have” to being “must have.”https://home.treasury.gov/news/press-releases/jy0210

The following excerpts are taken from remarks by Janet Yellen today at the Climate Roundtable. BOLD and comments in [ ] were added by me.

“Finally, we’re focused on promoting the resilience of financial markets – including municipal markets – to climate-related financial risks. A key challenge here is imperfect information—understanding the risks and opportunities climate change presents. Enhanced climate disclosures [ESG] an help to address that information deficit, enabling borrowers and lenders to make [lending] decisions with more complete data.

At today’s roundtable, one area of focus is emerging best practices in climate risk identification and disclosure strategies for municipal issuers. We’re encouraged by the increasing interest in this topic. Treasury plans to collect and disseminate lessons learned and best practices among its state and local partners who are investing in climate transition, and we’ll convene municipal market participants to support the advancement of innovative policy at the state and local levels.

We’ll also discuss the steps issuers are taking to design and structure instruments that can tap into growing pools of private capital seeking sustainable investments.

As more private capital seeks to invest in the climate transition, how can we help that investment flow to your communities? And flow as quickly as possible? 

Increasingly, private investors recognize the enormous opportunities embedded in the transition to a net-zero economy. Firms [Black Rock] responsible for approximately $130 trillion in global financial assets have committed to net zero by midcentury. Helping connect this capital to green projects in communities like yours – leveraging and complementing public investment dollars – will be vital to ensuring we can meet the climate challenge.

In this effort, the Treasury Department will lead, but we will also learn, and that’s what we are here to do today. We also know that Treasury is just one part of the whole-of-government effort.

Central to that effort is the implementation of the bipartisan infrastructure law, and so it gives me great pleasure to pass it over to former Mayor Mitch Landrieu, the Senior Advisor to the President for Infrastructure Coordination.” https://home.treasury.gov/news/press-releases/jy0625


The following article was prior to COP26 las November.

Nov 2 (Reuters) – U.S. Treasury Secretary Janet Yellen on Tuesday will push financial institutions to adopt a “greater sense of urgency” about investing in a net-zero economy in meetings with the head of Bank of America and other finance CEOs, Treasury officials said.

John Morton, a former private equity adviser and Treasury’s first climate counselor, told reporters Yellen would explain new U.S. government policies aimed at moving toward a clean energy economy, and try to better understand what steps were needed to accelerate work by the private sector.

A source familiar with the meeting said participants would include Mike Bloomberg, Larry Fink, CEO of BlackRock, and John Doerr, chairman of Kleiner Perkins, among others.

Morton said Yellen would talk with the executives about what they see as the biggest hurdles to achieving net-zero targets.

“The question of how large financial institutions transition from current activities to a net zero posture, and how quickly they do that, is ultimately the single most important question,” he said. “That will be the single most important factor in determining whether we achieve broader global net zero goals.”https://www.reuters.com/business/sustainable-business/yellen-tell-bank-america-ceo-others-speed-up-climate-investments-2021-11-02/

3 comments

  1. It seems to me that we are busily trying to solve a problem that most likely isn’t even a problem. What will we gain by this if countries like China and India continue to pollute?

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