Daily Caller News Foundation

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.

“President Donald Trump understands the importance of coal for our Energy security and has vowed to fight left-wing ideologues who seek to make us weaker and poorer under the guise of ESG,” said FTC Chairman Andrew Ferguson. “Today, the Federal Trade Commission carries out this administration’s mission to unleash American Energy dominance, protect coal, and stop the left’s attempt to corrupt financial markets with political and social objectives.”

“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, whichdirected 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.”

“The President has declared a national Energy emergency, and we need competition in coal production now more than ever to help fuel American Energy dominance,” said Assistant Attorney General Abigail A. Slater of the DOJ’s Antitrust Division. “American consumers suffer when institutional asset managers use shareholdings in competing companies to orchestrate output reductions.”

BlackRock, State Street and Vanguard are three of the world’s largest asset managers. All three were members of the Net Zero Asset Managers (NZAM) initiative until Vanguard dropped out in December 2022 and BlackRock exited the coalition in January.

Advertisement

The DOJ and FTC’s “support for this baseless case undermines the Trump Administration’s goal of American Energy independence,” a BlackRock spokesperson wrote to the Daily Caller News Foundation. “As we made clear in our earlier motion to dismiss, this case is trying to re-write antitrust law and is based on an absurd theory that coal companies conspired with their shareholders to reduce coal production. Forcing asset managers to divest from coal companies will harm their ability to access capital and invest in their businesses and employees, likely leading to higher Energy prices.”

“These asset managers, which have been acting as an ESG climate cartel have not only deceived investors but also harmed millions of American families by raising costs and contributing to record inflation,” executive director of Consumers’ Research Will Hild wrote to the DCNF. “Not only does the FTC and DOJ agree that the investments made were driven by a radical, political objective, but go directly against President Trump’s Energy goals.”

The White House, the FTC, Paxton’s office, Vanguard and State Street did not respond to the DCNF’s requests for comment.

All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact [email protected].