Former government officials and lawyers trying to make money from climate change disclosure proposals fail rulethe Securities and Exchange Commission continued to kick the ball last year.
Many of the objections raised in public comment revolve around so-called things scope 3 Emissions that are not directly produced by a company, but arise from those that occur “upstream” and “downstream” of a company's activities. This is a problem. That's because, if the SEC rules are finalized, they would effectively extend the commission's jurisdiction to private companies that do business with public companies registered with the SEC.
there is strong case It should be argued that the Commission would be overstepping its authority under this scenario, which would help explain why the SEC has been slow to move forward with the proposal. (Related: Frank Lachey: Biden's energy policy is tailor-made to crush the middle class)
But there's also a further conspiracy involving a slightly unforeseen incident. “Carbon Accounting” The company had special software known as Persefoni that was also able to fabricate the works. The for-profit organization, founded in 2020, successfully recruited several senior SEC officials, all of whom were involved in crafting the policy. climate rules First introduced in March 2022.
These include: Alison Helen Leeformer Acting SEC Chairman, Christina Wyattformer SEC Senior Counsel for Climate and Environmental, Social, and Corporate Government (ESG). emily pierce He served as Deputy Director of the SEC's Office of International Affairs.
SEC Estimate It will cost companies between $460,000 and $640,000 to comply with the new rules during their first year of operation. Given the complexity involved in tracking Scope 3 emissions, it's not too hard to imagine how Persephone could benefit financially from software and accounting services specifically designed for this purpose.
In fact, it seems like it was planned all along.influence watch I will explain How accounting firms and environmental activists collaborated to provide substantive input on disclosure rules. Moreover, Persephone prominently mentioned Throughout the SEC's proposal. But carbon accountants aren't the only ones who can profit at the expense of companies within the SEC's jurisdiction.
Dan Kish, a senior fellow at the Washington-based nonprofit Energy Institute, sees the potential for “a big payday for law firms” with the SEC's supply chain reporting requirements. ing.
“This is all about expanding the size and scope of government,” he said in an interview. “If lawyers get involved in a class action lawsuit, they will say that this particular company is not reporting its emissions properly. We expect lawyers to make a lot of money from these lawsuits. We're going into a very gray area as to how we can expect companies to account for every item along their supply chain.”
Kish continued:
“Lawyers get involved under the guise of protecting the public interest, but they end up raking in all kinds of cash. Law firms then put campaign contributions into the coffers of the people pushing these policies. The process doesn’t end here because it pours in.”
The SEC's actions could be seen as just one part of President Biden's agenda. “Government-wide efforts” Promoting climate action at the expense of taxpayers and energy producers.
Gordon Tomb, a senior fellow at the Commonwealth Foundation, a free-market think tank headquartered in Harrisburg, said businesses in energy-intensive states like Pennsylvania are likely to experience greater financial stress. (Related: David Blackmon: Left-wing billionaires have new plans for fossil fuel wars)
“pennsylvania “We are the second largest net supplier of energy to other states and the largest exporter of electricity to other states,” Tom said. “Therefore, there are at least hundreds of private companies with thousands of employees who support companies that emit carbon dioxide in their energy production. Imposing artificially constructed costs to create a way for some people to make money without generating profits is egregious and economically destructive.”
Ultimately, it is up to Congress to govern an overreaching executive branch. Last June, House Oversight Committee Chairman James Comer (RK.Y.) and Senate Banking Committee Ranking Member Tim Scott (RS.C.) joint letter It is seeking information and documents from the SEC that would provide insight into the commission's relationships with Persephone and environmental activist groups. While this is an encouraging sign, it is not enough for those who may fall victim to onerous new regulations.
Kevin Mooney is a senior investigative reporter at the Commonwealth Foundation, a free market think tank in Pennsylvania, and writes for several national publications. Twitter: @KevinMooneyDC
The views and opinions expressed in this commentary are those of the author and do not reflect the official position of the Daily Caller News Foundation.
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