The Collapse of Net Zero: Profiting from the Implosion of the Green Bubble
The United Nations launched the Net Zero Banking Alliance (NZBA) with great fanfare in 2021.
It brought together some of the world’s largest banks, committing them to a goal they could never achieve: reaching net-zero carbon emissions within their lending and investment portfolios.
This entailed severing ties with a significant portion of their clients and investments in hydrocarbons, transportation, and other major industries while redirecting vast sums of shareholder funds into uneconomic “green” scams.
In short, the NZBA represented a further politicization and weaponization of the global banking system. Companies or countries unwilling to bow to the climate cult faced the threat of being de-banked.
Over the following months, more than 120 global banks—including HSBC, Bank of America, Barclays, and Deutsche Bank—tripped over themselves as they rushed to join the NZBA and earn ESG points.
As the momentum for the NZBA continued to grow, the participating banks were put on a collision course for a reality check of historical proportions.
As the big banks began to realize their NZBA pledges were an unrealistic fantasy, tensions started to build. These tensions finally erupted during a conference call between major banks and government regulators last year.
During the call, Judson Berkey from UBS voiced his frustration and addressed the elephant in the room, stating that the “world’s biggest banks can’t live up to the green regulatory ideal unless they start shedding vast numbers of clients worldwide at a reckless pace, which would also disrupt economies across large regions of the globe that depend heavily on dirty fuels.”
If the big banks were to fulfill their NZBA commitments, they would need to stop serving major commodity companies, energy-intensive tech firms, and numerous others whose carbon accounting didn’t add up. This would also require the banks to significantly scale back their operations in countries like Poland, Indonesia, South Africa, and others that rely heavily on coal as a primary energy source.
Faced with this unappealing reality, the banks began reconsidering their involvement in the NZBA.
Then came Trump’s victory in the 2024 election, and the dam burst.
Within weeks of Trump winning, Bank of America, Wells Fargo, Goldman Sachs, Citigroup, Morgan Stanley, JPMorgan (America’s largest bank), and other major financial institutions announced their departure from the NZBA.
The virtue-signaling rats are fleeing the sinking NZBA ship as fast as possible.
I bring up the story of the NZBA because it highlights a long overdue paradigm shift in the global energy markets: the $5 trillion green bubble has burst.
As Mark Mills points out in a Manhattan Institute report, governments worldwide have spent over $5 trillion in the past two decades to subsidize wind, solar, and other so-called green initiatives. To put that in perspective, $5 trillion is roughly the GDP of Japan, the world’s third-largest economy.
Despite this staggering financial support, hydrocarbons still supply 84% of the world’s energy—a mere 2% drop since governments began binge spending on green initiatives two decades ago.
So-called renewables—more accurately, unreliables—have been a giant flop. They are not viable for baseload power, even with massive subsidies. Today, using wind and solar for mass power generation is an artificial political solution that would not have been chosen on a genuinely free market for energy.
Remember this the next time a politician, media outlet, academic, or celebrity casually insists that an energy “transition” is inevitable and imminent as if it’s preordained from above.
It’s not.
They’re trying to manufacture your consent for a scam of almost unimaginable proportions.
I believe Trump’s return to the White House marks the beginning of the end for the Green Scam.
Trump has pledged to end electric vehicle subsidies. He is also openly pro-hydrocarbon and pro-nuclear energy.
I believe there is little political appetite to keep funneling trillions of taxpayer dollars into uneconomic boondoggles that have caused monumental distortions in the energy market and skyrocketing consumer prices.
The situation is ripe for lucrative speculations.
Unreliables—i.e., renewables—will not replace hydrocarbons anytime soon and will certainly not bring about energy security, despite what many “serious” people believe.
When it comes to reliable baseload power, most of humanity has only three choices:
- Hydrocarbons—coal, oil, and gas
- Nuclear power
- Abandon modern civilization for a pre-industrial standard of living.
Aside from friendly aliens delivering a magical new energy technology, most places have no other alternatives.
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