Through ESG – Environmental, Social and Governance – mandates, the titans of global finance positioned themselves as the arbiters of corporate virtue. They pressured companies to divest from fossil fuels. They built an entire moral and financial architecture around the concept of decarbonization.
But this June, two major events confirmed the slow demise of the great North American decarbonization experiment.
First, Nippon Steel finalized its historic acquisition of U.S. Steel, signaling a massive resurgence of energy-intensive manufacturing on American soil. Up North, the government of Saskatchewan announced its plan to keep coal-fired plants alive beyond 2030, openly defying federal regulations and international climate agreements.
They are not minor setbacks to the climate agenda but fundamental course corrections, powerful acknowledgments that the prosperity and security of nations depend on energy-dense resources and the industries they power.
Steel Deal That Shattered Green Illusions
On June 18, Nippon Steel acquired the legendary Pittsburgh-based company to reshape the global steel industry. The $14.9 billion transaction, one of the largest in recent industrial history, creates a powerhouse with a crude steel capacity of 86 million metric tons.
“Together, Nippon Steel and U. S. Steel are moving forward as the ‘Best Steelmaker with World-Leading Capabilities,’” says the press release. Massive capital will be unleashed across steelmaking facilities in Pennsylvania, Indiana, Arkansas, Minnesota and Alabama. The overall investment package is expected to protect 10,000 jobs and create 10,000 more in construction trades through the addition of a new electric arc furnace.
Steel production consumes enormous quantities of energy – primarily from coal and natural gas. The blast furnaces, coke ovens and electric arc furnaces that make up the lifeblood of steel mills are not powered by solar panels or wind turbines. They are powered by carbon-based fuels. Period.
This acquisition alone smashes multiple climate illusions in one blow. One, that emissions-intensive sectors would be phased out in rich countries. Another, that ESG-aligned finance would avoid “dirty” industries. And a third, that international treaties would keep governments and corporations aligned toward decarbonization.
Look who helped push this deal through. Citibank served as the financial advisor to Nippon Steel. Barclays, Goldman Sachs and Evercore were among the advisors for U.S. Steel. These are the same firms that plaster their websites with ESG statements and Net Zero commitments.
The same firms that swore to "align their lending portfolios with climate goals" and pressure companies to reduce carbon footprints. Yet here they are, actively greasing the wheels of a carbon-heavy industrial renaissance.
Saskatchewan Calls the Bluff on Coal Phaseouts
Then the same week, came another announcement, this time from the political frontier of Western Canada. The government of Saskatchewan made clear that it would extend the life of its coal plants beyond 2030, despite federal mandates to the contrary.
Energy Minister Dustin Duncan was unapologetic. “We’re not going to let federal politicians in Ottawa tell us to turn off the lights,” he said. Citing energy security and cost stability for residents, the province says it will keep coal-fired plants past the 2030 deadline imposed by Canada’s federal Clean Electricity Regulations,
This open rebellion is framed as a strategic return to realism with no use of euphemisms such as “transition” or “temporary extension.”
Collapse of the Climate Narrative
The Net Zero facade has collapsed massively, undeniably, irreversibly – because no policy survives violations of the laws of physics and market demand. Despite trillions spent on “renewables,” their contribution to energy production has barely budged in two decades.
What we’re witnessing in North America is not an anomaly but rather the beginning of a new phase. In 2023, fossil fuels still accounted for over 80% of global primary energy use. Globally, energy-intensive industries are thriving. China, the world’s largest coal consumer, approved 106 gigawatts of new coal power in 2024 alone.
The thud you hear is the sound of the decarbonization fantasy crashing to Earth. The sigh is one of relief as common sense returns to the public square.
There is no post-carbon future on the horizon, only a post-illusion present. And fossil fuels remain the lifeblood of progress.
