Texas bans local, state government entities from doing business with firms that “boycott” fossil fuels

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Texas Comptroller Glenn Hegar singled out financial firms under a 2021 state law that prohibits most state entities from contracting with companies that have reduced or cut investments in the oil and gas industry.

Texas Comptroller Glenn Hegar said 10 financial firms can no longer do business with any level of state government because they have reduced or ended investments in the fossil fuels industry., our daily newsletter that keeps readers up to speed on the most essential Texas news.

Hegar sent inquiries to hundreds of financial companies earlier this year requesting information about whether they were avoiding investments in the oil and gas industry in favor of renewable energy companies. The survey was a result of a new Texas law that went into effect in September and prohibits most state agencies, as well as local governments, from contracting with firms that have cut ties with carbon-emitting energy companies.

“This is not a fact-based judgment,” a spokesperson for the company said in a written statement. “BlackRock does not boycott fossil fuels — investing over $100 billion in Texas energy companies on behalf of our clients proves that. Texas energy experts said the intent of the law, and Wednesday's announcement, was to punish financial firms that don’t want to invest in the backbone of Texas’ economy — oil and gas.

James Coleman, an energy law professor at Southern Methodist University, said there is political pressure driving both sides of this debate.

 

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