Fossil fuel bailouts

Plans to buy billions of dollars’ worth of corporate bonds must not exclude coal companies, the world’s largest asset manager may be told. BlackRock, which has USD7trn assets under management, has been tasked by the US government to lead a USD454bn purchase of company bonds. However, since the asset manager’s own policy is to avoid actively investing in companies with 25% of revenue derived from coal power, some right-wing US politicians are anxious that the fossil fuel industry is not left out of the support programme.
In a letter to the Federal Reserve, 17 Republican politicians demand the relief programme, which aims to shore up the economy as businesses battle to stay alive during the Covid-19 pandemic, is ’broad and flexible’ and asserts that companies in the ’energy and transportation sectors’ deserve support.
The politicians’ requests run counter to those made from environmental groups which urged BlackRock to include environmental considerations when making any bond purchases.

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