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.

Major pipelines hit legal snags. But it’s business as usual in Texas.

Protesters carrying a large sign in the shape of the Earth

Global warming will breach the 1.5 degree celsius limit. Now what?

As global temperature increase shoots past 1.5 degrees Celsius, the vulnerable countries that fought for that Paris Agreement target face a brutal new reality.
A cleared forest with trees in the background

Biomass power surge in Indonesia threatens tropical forests

Expanding deforestation in Indonesia caused by the country’s wood pellet and chip industry is putting further pressure on tropical forests, Key Biodiversity Areas, and Indigenous territories in the archipelago.

A selection of house plants under a tent

America’s houseplants come at a steep price for greenhouse workers

The people who grow houseplants aren't often thought of as agricultural workers, but they face many of the same hardships — especially in extreme heat.
A woman drinking water out of a glass

Jet fuel in the water

This week, co-host Jake Bolster and reporters Marianne Lavelle and Liza Gross discuss the polluting power of fossil fuels and how they are harming two communities in very different ways.
An aerial view of a residential area in Hawaii with inlets and a marina

Battered by storms, Hawai‘i communities search for more resilient solutions

“It’s a sign of the times,” Maui County Council Member Tamara Paltin said. “Everything is kind of cyclical, but I think the Earth is going through just a transition. It’s always changing, but this change is just harder for our built environments and humans to deal with.”

A burning tree trunk laying on ash with smoke behind it

Prince William warns ‘inch-by-inch’ action to stop climate change is not enough

‘Devastating’ UK forest fires show urgent action is needed by 2030 to save the planet, he says
An illustration of continents of the earth with dry land where the oceans should be

‘Recovery becomes self-propelling’: Five positive tipping points that can save the world

New research from The Earthshot Prize and the University of Exeter has revealed 51 solutions that can trigger “rapid and transformative change” to repair the planet over the next five years.

From our Newsroom
Multiple Houston-area oil and gas facilities that have violated pollution laws are seeking permit renewals

Multiple Houston-area oil and gas facilities that have violated pollution laws are seeking permit renewals

One facility has emitted cancer-causing chemicals into waterways at levels up to 520% higher than legal limits.

Regulators are underestimating health impacts from air pollution: Study

Regulators are underestimating health impacts from air pollution: Study

"The reality is, we are not exposed to one chemical at a time.”

Pennsylvania governor Josh Shapiro speaks with the state flag and American flag behind him.

Two years into his term, has Gov. Shapiro kept his promises to regulate Pennsylvania’s fracking industry?

A new report assesses the administration’s progress and makes new recommendations

silhouette of people holding hands by a lake at sunset

An open letter from EPA staff to the American public

“We cannot stand by and allow this to happen. We need to hold this administration accountable.”

wildfire retardants being sprayed by plane

New evidence links heavy metal pollution with wildfire retardants

“The chemical black box” that blankets wildfire-impacted areas is increasingly under scrutiny.

Stay informed: sign up for The Daily Climate newsletter
Top news on climate impacts, solutions, politics, drivers. Delivered to your inbox week days.