The Federal Trade Commission (FTC) and the Department of Justice (DOJ) threw their weight behind an antitrust lawsuit against major asset managers that alleges the firms colluded to tank coal production with their embrace of zero-emissions goals on Thursday morning.
The lawsuit, led by Paxton and backed by ten other state attorneys general, alleges that BlackRock, Vanguard and State Street collusively used their market power to suppress coal production, thereby burdening consumers by causing the price of coal to skyrocket. The Trump FTC and the DOJ filed a statement of interest on Thursday supporting the attorneys general’s lawsuit, signaling the administration’s view that the firms’ so-called “environmental, social and corporate governance” (ESG) investing may fall afoul of antitrust law.
“These companies allegedly blocked the production of American coal in the name of climate change scaremongering, all so they could take money out of the pockets of American consumers and put it in theirs,” Ferguson continued.
The FTC and DOJ are taking action following Trump’s day-one energy emergency declaration and his April 8 executive order, which directed federal agencies to “encourage and support our Nation’s coal industry to increase our energy supply, lower electricity costs, stabilize our grid, create high-paying jobs, support burgeoning industries, and assist our allies.”
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