We have G7 Finance Ministers, regulatory authorities, woke businesses and their industry associations and governments themselves all trying to choke-off funding for hydrocarbons. We also have government institutions like CSIRO fabricating cost data to prove that renewables are cheaper (though such assessments are never followed by the corollary that we should cease renewables subsidies).
Most businesses, even those like electricity utilities and miners deeply enmeshed in fossil fuels are mouthing the net zero emissions catechism. In addition, BlackRock and other global financial institutions, and all Australia’s union-dominated “industry” funds, filter their investment decisions against firms supplying and “excessively” using hydrocarbon fuels.
I have a piece in The Spectator which addresses this.
Excluding broad sectors of the market is likely to bring about lower investment returns. This is not evident at present – the returns of the superannuation funds that are most gung-ho in rejecting politically incorrect energy match those of the leading performers. It may however be that the weight of new investment discriminating against energy stocks has suppressed their relative prices. In that case a future correction is likely.
The discriminatory policies of superannuation funds (and the willing or unwilling matching behaviour of energy businesses) is contrary to the interests of hydrocarbon rich Australia (as well as developing countries). Rather than encouraging firms to exclude such investment opportunities, the Government should prohibit the custodians of individuals savings that are favoured by regulatory measures from investing using political criteria.