Praxis advocates for sustainable utilities despite headwinds
Power companies keep long-term goals while navigating current challenges
Praxis Investment ManagementTM has engaged utilities on climate change for over a decade, responding to God’s call to care for the world entrusted to us. During this time, utilities made incremental progress toward sustainability through emissions cuts, the transition from coal to natural gas, and the increased integration of renewable energy.
As renewable energy became more cost-competitive, power companies took major steps forward, including long-term Net-Zero carbon emissions commitments and the adoption of Just Transition plans, which seek to protect and involve workers and communities affected by the transition to cleaner energy.
Recent US policy changes have created obstacles for the transition to cleaner energy:
- The US withdrew from the Paris Agreement, which is an international treaty adopted in 2015 to combat climate change. Nearly all nations in the world have joined it, committing to reduce greenhouse gas emissions and enhance resilience.
- The Environmental Protection Agency (EPA) rescinded its “endangerment finding” for greenhouse gas emissions. The endangerment finding was the EPA’s bedrock protection that recognized greenhouse gases such as methane and carbon dioxide as a threat to human health and required regulation. With this repeal, the EPA has effectively stripped itself of its legal authority to regulate greenhouse gases.
- The Department of Energy has begun issuing emergency orders requiring certain coal-powered power plants slated for retirement to continue operations.
These policy changes have disrupted utilities’ plans for decarbonization and brought about a chilling effect where no company wants to stand in the way of the Administration’s priorities. However, while many utilities have scrapped near-term emissions reduction and renewable energy goals, most utilities continue to maintain their commitments to long-term sustainability goals.
Praxis will continue to pursue advocacy on climate change as a faith-based response to our role as stewards of creation. We engage power companies to encourage the low carbon transition to mitigate the growing impacts of climate change and provide for a sustainable electric supply into the future, promoting policies that work for all stakeholders.