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With Climate Pledges, Some Wall Street Chiefs Warn of Rising Prices

Mount Equity Group Tokyo, Japan > News > Markets > With Climate Pledges, Some Wall Street Chiefs Warn of Rising Prices

David Solomon, the chief executive of Goldman Sachs, said last month that his firm would continue funding fossil fuel companies, stressing that not doing so would lead to much higher prices. “We have to balance good public policy with the short-term implications and that’s why it is a transition,” he said. “If we’re too aggressive in the context of how we direct capital to the private sector, that can be more inflationary.”

To supporters of the divestment movement, attributing high energy prices to the push to reduce funding of fossil fuels is a cynical attempt to undermine what they say is an important part of the solution to the climate crisis.

“Blaming divestments for high prices and energy shortages is really a red herring,” said Ben Cushing, who runs the Sierra Club’s Fossil-Free Finance campaign. “The reality is that oil and gas are volatile, global commodities and exist in a global market that is in flux for…

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