Why Sen. Chuck Grassley, a supporter of renewable energy, criticizes environmental investing

Some key Republican U.S. senators who’ve slammed Wall Street’s efforts to tackle climate change are themselves big supporters of green energy.

The list includes Iowa’s Chuck Grassley, Mike Crapo of Idaho and Mitt Romney from Utah. All three have criticized environmental, social and governance investing, which helps channel money to clean energy, and opposed President Joe Biden’s landmark Inflation Reduction Act and its climate provisions. But each has been a longtime advocate of renewable energy in their home states, and in some cases received campaign contributions from businesses that stood to gain.

From where he sits, Grassley doesn’t see a conflict between his criticism of ESG in Washington and his green advocacy at home. His spokesman, Taylor Foy, said ESG involves “coercive elements” that are contrary to Grassley’s view that capital markets should drive a low-cost shift to cleaner energy.

While it’s no secret politicians sometimes say one thing and do another, the disconnect between words and actions is particularly stark when it involves ESG — a huge financial business that’s been vilified by Republicans. While their financial backers in Big Oil and other polluting industries are pushing opposition to sustainable energy, their constituents are likely to reward them for bringing green jobs to their states.

The IRA will potentially spark trillions of dollars in investments for everything from solar energy to charging stations. Although every Republican in Congress opposed the law, many have touted the billions of climate dollars that will soon be landing in their districts as a result.

“These are contradictions,” said Cary Krosinsky, who teaches sustainable investing at Yale and Brown universities. “Republicans run the danger of advocating against things they are otherwise already doing and encouraging.”

Grassley was among a group of GOP senators who threatened dozens of law firms in November with investigations into whether their clients committed antitrust violations by taking part in “climate cartels” or “ill-advised ESG schemes.” The 89-year-old also voted last month to block a Labor Department rule that allows retirement plans to consider climate change and other ESG issues, triggering Biden’s first veto.

Grassley is referred to as the “father” of U.S. wind power

But for decades, Grassley has been a strong supporter of renewable energy and is even referred to as the “father” of American wind power. In the early 1990s, he wrote the first tax credit for wind energy and has introduced bills to bolster biofuels, of which Iowa with its massive agriculture sector is among the biggest producers.

Grassley’s website highlights how wind energy cuts greenhouse gas emissions, and says the senator paved the way for Iowa to shrink its carbon footprint. His website also says the markets will ultimately drive a low-cost shift to cleaner fuels if they’re competitive.

The senator counted biofuel maker POET among his top donors, contributing almost $36,000 during his last campaign, according to data compiled by the watchdog group Open Secrets. He also received $27,500 from ethanol maker Growth Energy and the same amount from renewables-development giant NextEra Energy, the Washington-based group reported. Wind turbine supplier General Electric contributed more than $23,000, according to Open Secrets.

After Biden took office, Grassley urged him to keep his pledges on green energy, saying wind power will be vital to create jobs and cut emissions. The White House estimates that Iowa will attract almost $25 billion of investments in large solar, wind and storage projects through the end of the decade as a result of the IRA.

Crapo bolsters clean energy in Idaho

In Idaho, Crapo, like Grassley, has attacked ESG investing on several fronts, despite his efforts to bolster clean energy.

For years, the 71-year-old opposed federal pension guidance on ESG, claiming it would sacrifice profits in favor of lowering emissions. Last May, Crapo was among 10 Idaho officials who blasted credit-rating company S&P Global for producing a report on ESG risks for states, describing the metrics as “politically biased.”

But the previous year, Crapo introduced a bipartisan bill with Sen. Sheldon Whitehouse, D-R.I., which would help boost innovation in clean-energy technologies. “If we are to meet long-term emissions targets without sacrificing affordable electricity, we need to invest in on-the-horizon technologies,” Crapo said at the time. The bill didn’t become law.

Romney says way to address climate change is through private sector

Romney was among a dozen or so Utah lawmakers who criticized S&P Global last year for its ESG analysis of states. He also recently blasted the federal pension ESG rule, saying it politicizes retirement savings to favor Biden’s “ideological preferences.”

Yet Romney, 76, has said the way to address climate change is through private sector innovation. He backs funding for things like solar, nuclear and climate research. His spokeswoman declined to comment.