We always knew it would be costly, and experience has proven that true. But now, in a newly released report published by the Arizona Free Enterprise Club and the AZ Liberty Network, the cost for Arizona’s largest utility to go “Net Zero” was found to be even more expensive than expected coming with a massive price tag of at least $42.7 billion by 2038.
History of the Green New Deal in Arizona
The “green” agenda is not new to Arizona. In 2006, then Chairman of the Corporation Commission Kris Mayes pushed through the first mandates in Arizona, requiring our utilities to get 15% of their energy generation from “renewables” by 2025. Those rules alone have already cost ratepayers $2.3 billion. In 2018, an out-of-state billionaire funded a proposition on the ballot that would have required utilities to obtain 50% renewable generation by 2035. That measure went down in flames, being rejected by a 2-1 vote.
And these aren’t just public statements. The utilities have committed to going “Net Zero” in SEC filings to their shareholders, and they even compensate their top executives (page 68) based on how much “clean” energy they build in our state. Unsurprisingly, these commitments completely shape their resource plans…
During a 12-minute video appearance at the 2025 Alliance for Responsible Citizenship (ARC) Conference held in London, Secretary of Energy Chris Wright told the audience that “Net zero by 2050 “is a sinister goal.”
That is a bold statement, especially given that it was delivered to an audience sitting in the United Kingdom, where both major political parties that have traditionally governed the country – the Conservative “Tories” and the far-left Labour Party – have spent the past decade pushing their country to meet its net zero goals as if it were a matter of religious faith. Regardless of the obvious negative economic and social consequences that have been heaped upon UK citizens, and equally obvious futility of the entire effort, leaders of both parties have kept the country on this ruinous path.
As Wright went on to point out, net zero by 2050 is “both unachievable by any practical means, but the aggressive pursuit of it…has not delivered any benefits, but it’s delivered tremendous costs.” This is objectively true, the most painful example being the rapid deindustrialization of the formerly strong British economy and the accompanying rapacious condemnation of thousands of acres of arable lands to become home to huge wind and solar installations.
As Wright points out, “no one’s going to make an energy-intensive product in the United Kingdom anymore.” A clear object lesson in that reality came in September when venerable steelmaker Tata Steel shut down the last existing steelmaking plant in the UK.
Climate zealots in both major parties celebrated that event, but we must ask what there really is to celebrate? Sure, the Labour politicos get to virtue signal about the elimination of X tons of carbon dioxide emissions, but in a global sense, that’s meaningless. The UK still needs steel – the only difference now is that the steel that used to be made by highly-paid workers in domestic mills will now be imported steel made by poverty waged workers in Pakistan, China and other mainly Asian countries.
Meanwhile, the emissions created by making the steel in those other countries with lower environmental regulations will be far larger than from steel that used to be made in the UK. As Wright pointed out at the ARC conference, “This is not energy transition. This is lunacy.”
He isn’t wrong.
On Feb. 13, the Center for Research on Energy and Clean Air (CREA) published a report showing that construction of new coal-fired power plants in China reached a ten-year high in 2024. CREA finds that “China approved 66.7 gigawatts (GW) of new coal-fired power capacity in 2024, with approvals picking up in the second half after a slower start to the year.” It all belies the favored narrative on the political left that China is leading the world in converting its power systems to renewables. In reality, the expansion of its coal sector may actually be accelerating again.
That renewed Chinese focus on expanding its coal power fleet is driven in large part by the zealous focus by globalist leaders in the UK and other western countries – Germany is another great example – on deindustrializing their own economies to satisfy their obsession over atmospheric plant food.
The making of steel and other heavy industrial processes requires reliable, affordable power generation that runs 24 hours every day, 7 days every week. Whether politicians like it or not, coal is the fuel that most reliably and consistently meets all those tests.
Thus, if China and other Asian nations are destined to inherit all the heavy industries being killed off by virtue signaling Western nations, they will need many more coal power plants to power them. This really isn’t complicated.
Meanwhile, the UK can no longer manufacture its own steel or myriad other industrial products that are essential to modern human existence. If the Labour government continues its policy of condemning vast swaths of British farmland to house more and more wind and solar sites, the kingdom will soon no longer be able to even feed its people.
All to satisfy this odd religious dogma based on an obsession over plant food. Lunacy, indeed.
David Blackmon is a contributor to The Daily Caller News Foundation, an energy writer, and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.
President Trump’s historic victory in the November election gave him a clear mandate from the American people. And so far, he hasn’t wasted any time getting to work. In his first month back in office, Trump signed 45 Executive Orders (EO) in an effort to put America first and undo much of the damage created by the Biden administration. And that’s especially true with his executive actions to unleash American energy.
Ending the Net Zero Climate Cult Fantasy
For four years under President Biden, the American people were forced to endure an administration that was hellbent on pursuing a net zero agenda. Across the country, they pushed these radical and costly climate action plans to fundamentally transform and restrict the energy options available to consumers. Along with this came calls from the Left to ban gas stoves, gas cars, gas-powered lawn equipment, and hundreds of other draconian ideas to limit the freedom of the American people.
If the high cost of these plans wasn’t enough, they have also proven to be unreliable. States and countries that have committed to energy sources like solar and wind as part of this net zero fantasy have experienced rolling blackouts, continually demand that their customers use less, and eventually have to make haste to open reliable sources of generation they had closed down. Isn’t that right, California?
But Trump’s Executive Order 14154 unleashes fossil fuel production and use in America while unwinding much of the damage caused by the Biden administration…
Just a few years ago, ESG was all the rage in the banking and investing community as globalist governments in the western world focused on a failing attempt to subsidize an energy transition into reality. The strategy was to try to strangle fossil fuel industries by denying them funding for major projects, with major ESG-focused institutional investors like BlackRock and State Street, and big banks like J.P. Morgan and Goldman Sachs leveraging their control of trillions of dollars in capital to lead the cause.
But a funny thing happened on the way to a green Nirvana: It turned out that the chosen rent-seeking industries — wind, solar and electric vehicles — are not the nifty plug-and-play solutions they had been cracked up to be.
Even worse, the advancement of new technologies and increased mining of cryptocurrencies created enormous new demand for electricity, resulting in heavy new demand for finding new sources of fossil fuels to keep the grid running and people moving around in reliable cars.
In other words, reality butted into the green narrative, collapsing the foundations of the ESG movement. The laws of physics, thermodynamics and unanticipated consequences remain laws, not mere suggestions.
Making matters worse for the ESG giants, Texas and other states passed laws disallowing any of these firms who use ESG principles to discriminate against their important oil, gas and coal industries from investing in massive state-governed funds. BlackRock and others were hit with sanctions by Texas in 2023. More recently, Texas and 10 other states sued Blackrock and other big investment houses for allegedly violating anti-trust laws.
As the foundations of the ESG movement collapse, so are some of the institutions that sprang up around it. The United Nations created one such institution, the “Net Zero Asset Managers Initiative,” whose participants maintain pledges to reach net-zero emissions by 2050 and adhere to detailed plans to reach that goal.
The problem with that is there is now a growing consensus that a) the forced march to a green energy transition isn’t working and worse, that it can’t work, and b) the chances of achieving the goal of net-zero by 2050 are basically net zero. There is also a rising consensus among energy companies of a pressing need to prioritize matters of energy security over nebulous emissions reduction goals that most often constitute poor deployments of capital. Even as the Biden administration has ramped up regulations and subsidies to try to force its transition, big players like ExxonMobil, Chevron, BP, and Shell have all redirected larger percentages of their capital budgets away from investments in carbon reduction projects back into their core oil-and-gas businesses.
The result of this confluence of factors and events has been a recent rush by big U.S. banks and investment houses away from this UN-run alliance. In just the last two weeks, the parade away from net zero was led by major banks like Goldman Sachs, Morgan Stanley, Citigroup, Bank of America, Wells Fargo, and, most recently, JP Morgan. On Thursday, the New York Post reported that both BlackRock and State Street, a pair of investment firms who control trillions of investor dollars (BlackRock alone controls more than $10 trillion) are on the brink of joining the flood away from this increasingly toxic philosophy.
In June, 2023, BlackRock CEO Larry Fink made big news when told an audience at the Aspen Ideas Festival in Aspen, Colorado that he is “ashamed of being part of this [ESG] conversation.” He almost immediately backed away from that comment, restating his dedication to what he called “conscientious capitalism.” The takeaway for most observers was that Fink might stop using the term ESG in his internal and external communications but would keep right on engaging in his discriminatory practices while using a different narrative to talk about it.
But this week’s news about BlackRock and the other big firms feels different. Much has taken place in the energy space over the last 18 months, none of it positive for the energy transition or the net-zero fantasy. Perhaps all these big banks and investment funds are awakening to the reality that it will take far more than devising a new way of talking about the same old nonsense concepts to repair the damage that has already been done to the world’s energy system.
David Blackmon is a contributor to The Daily Caller News Foundation, an energy writer, and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.
“It’s an absolutely sh*t situation.” That is the assessment of Norway’s energy minister, Terje Aasland, about his country’s electricity costs rising to record levels due to its exports of power to the United Kingdom, Germany, Denmark and other European countries.
It is an outcome that many warned the Norwegian government would come about as the decisions were made to build the interconnects to export power into the European Union and the UK. Those critics were of course ignored as those in charge of Norway’s fortunes at the time felt compelled to genuflect to the demands of the EU and other globalist organizations.
Norway derives the vast majority of its electricity from hydropower, which currently provides 90% of the country’s power generation. Most of the remainder comes from wind power, and the nation enjoys a large excess of generating capacity on most days. Thus, all other factors being equal, it made some financial sense to establish those interconnects to sell the surplus into other countries.
But it only made sense when those other countries were taking care to ensure the continuing health and adequacy of their own electric grids. That certainly has not been the case in either the UK or Germany, whose governments have in recent years chosen to discard a former wealth of reliable baseload capacity provided by coal and nuclear plants in favor of relying too heavily on intermittent, weather-dependent wind and solar.
Now, when the wind stops blowing and the sun isn’t shining, those customers of Norwegian power exports drain the host country’s surplus, causing the extremely high energy costs to flow back upstream, hitting Norwegians with abnormally high utility bills. It all came to a head this week when low wind speeds, combined with abnormally cold temperatures on the European mainland, caused power rates in Norway to spike to as high as €1.12 ($1.18) per kilowatt hour (kwh).
By comparison, the average electricity rate per kwh in New York is around 22 cents, while Texans typically pay around 15 cents per kwh. What that price spike meant for Norwegians on December 12 is that taking a 5-minute warm shower would have cost them $5. Doing the same in Texas would have cost around 16 cents.
Naturally, public outrage in Norway over these needlessly high electricity rates is now causing policymakers there to run for political cover. The Financial Times reports that both the ruling leftwing Labour Party and conservative Progress Party are now making plans to campaign next year on platforms to limit or end the export of electricity via these international interconnections.
That is a prospect that no doubt sparks fear in the hearts of the central planners in both Germany and the UK, where electricity imports from Norway play a central role in their own emissions reduction plans. Those plans involve the willful destruction of reliable baseload power stations and forcing power costs to dramatically increase, which in turn results in heavy industries like steelmaking and other manufacturing to leave the country. In that way, these governments are essentially exporting their emissions to China, whose own government is only too happy to serve as home to these heavy industries and power them with the hundreds of coal-fired power plants they build each year.
California Gov. Gavin Newsom and his fellow Democrats have pursued essentially the same strategies in California in this century, with predictable results: Californians pay among the highest power rates in the United States as their power grid has become overloaded with intermittent generation and increasingly reliant on imports from other states. Rather than exporting its emissions to China, California exports them to Nevada and Utah and other U.S. states.
The Biden administration has attempted to take the entire country down this same economically ruinous path for the past four years. Fortunately, voters awakened just in time this year to head off the most damaging impacts now being seen in Germany and the UK.
For Norway, is this an example of the law of unintended consequences setting in? Sure, to some extent. But it is also a clear example of entirely foreseeable consequences stemming from poor policymaking by multiple national governments flowing across borders. This “sh*t situation” was all avoidable, and frankly should have been.
David Blackmon is a contributor to The Daily Caller News Foundation, an energy writer, and consultant based in Texas. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.
