From WSJopinion: Follow the money and note who benefits from creating an artificial demand for renewable energy, write joshrauh and Mels de Zeeuw
At the COP26 U.N. climate change conference, a group of 450 financial firms pledged $130 trillion in capital to finance the transition to net-zero emissions. Government mandates have already driven large private capital flows into expanding renewable energy, and now financial firms are eager to kick the phaseout of fossil fuels into high gear.
The finance industry’s palpable excitement is electrifying to climate activists and the politicians who cater to them. Wall Street is now squarely on their side. Yet the enthusiasm of asset managers and banks is hardly surprising. Any government mandate that a large amount of capital must be swiftly retired and replaced creates a tremendous opportunity for financiers, no matter the underlying reason.