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Mario Alejandro Ariza

Texas stumbles in its effort to punish green financial firms

Texas MSCI Riley Moore Floodlight

Fossil fuels power the Texas economy, accounting for some 14% of gross state product between 2019 and 2020. Now, Texas is the first state in the nation to pass anti-divestment laws for fossil fuels. (Gregory Bull / AP)

For years, fossil fuel producing states have watched investors shy away from companies causing the climate crisis. Last year, one state decided to push back.

Texas passed a law treating financial companies shunning fossil fuels the same way it treated companies that did business with Iran, or Sudan: boycott them.

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