From hype to gripe

Net-zero alliances were all over the place until recently.

Everyone had a pledge to make.

Everyone had a finger to point to the evil oil industry.

Everyone had an emission reduction plan.

And then it turned out acting this way does not bring in profits.

It must have been a shocker.

Not only that but conservative U.S. states started fighting back.

Banks and asset managers remembers what business they’re in.

It’s not the business of making net-zero pledges and emission reduction plans.

It’s the business of making money.

Trump has become the final straw.

All U.S. banks have now left the net-zero banking alliance, NZBA.

To avoid its own exodus, NZAM shut down after just one exit—but a massive one.

If BlackRock leaves, do you even care who stays?

NZAM cited “different regulatory and client expectations” for the decision.

That’s some really good entertainment at no cost.

The world is healing

Not only are financiers leaving net-zero groups en masse, they are also revising their targets.

Net-zero is quietly being removed from the number-one spot om the agenda…

Where it never really was, if we’re being honest.

That was just for show, for getting in the in crowd.

After so much money lost and a total lack of chances for a turnaround, it’s game over.

And that’s without Trump’s threat he’ll start tearing down wind turbines on day one.

With Trump? It’s just going to happen faster.

A vicious circle of demand

“Countries are racing to access critical minerals and secure their own supply chain,” Abdulaziz bin Salman explained this month.

“Rushing to secure access to resources will ultimately lead to higher emissions, higher metals costs and higher energy prices.”

Which is absolutely true.

It’s just that a lot of people pretend it’s not.

Too bad they can’t pretend forever.

High energy costs are difficult to hide.

Then there is the whole AI issue.

“More AI and data centers means more energy,” bin Salman said.

“You’ll have AI, data centers, mining, crypto mining ... can you imagine what will happen to energy demand?”

We sure can because it’s already happening.

And now we know why the Saudis suddenly remembered they also have natural gas reserves.

A fallback on simpler times

Bin Salman may be right about the rise of gas and metals.

But it will not continue forever.

Because it’s not happening naturally.

This shift to electrification is probably the most artificial change in history.

Which greatly reduces its chances of survival.

All the proof you need for that is available in the latest coal demand data.

Demand for coal hit a record last year—and electrification was a big reason.