Texas' stance against 'anti-fossil fuel' banks may cost billions in taxpayer dollars

In a bold move against banks deemed unfriendly to fossil fuels, Texas's actions could lead to a staggering $22 billion in additional taxpayer costs.

Chris Tomlinson reports for The Houston Chronicle.


In short:

  • Texas has blacklisted financial institutions that limit dealings with fossil fuel companies, impacting major banks like UBS.
  • The state's stance led to legal disputes and financial penalties, including an $850,000 settlement with UBS.
  • Economists predict this policy could result in Texas taxpayers facing up to $22.5 billion in extra interest payments over 30 years.

Key quote:

“If you're going to be anti-fossil fuels, if you're going to demand certain policies before you loan companies money, then we're not going to do business with you. That's a policy that we took to protect our oil and gas industry."

— Lt. Gov. Dan Patrick

Why this matters:

Texas's aggressive stance against 'anti-fossil fuel' banks highlights the complex interplay between environmental policies and economic repercussions. This stance could burden taxpayers with billions in extra costs, raising questions about the balance between environmental advocacy and fiscal responsibility.

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