When ordinary, hard-working men, women, and families invest their savings, they expect something simple and straightforward: that the people managing their money are focused on one thing, delivering the best possible returns. What they don’t expect is for those investments to become political footballs or ideological experiments, especially when those choices threaten the very industries that keep their communities alive. Yet that’s exactly what we’re seeing today.

In November 2024, Texas Attorney General Ken Paxton and 11 other state officials filed a deeply misguided lawsuit against America’s three largest asset managers, claiming they colluded to impose environmental, social, and governance (ESG) standards on coal producers. It’s an accusation that turns economic reality on its head and, ironically, puts the very industry they claim to defend in greater danger. For those of us who have lived in communities built around coal, this kind of political theater is more than frustrating; it’s reckless.

Coal has long been the backbone of West Virginia and of America itself. At its peak in the early 2000s, coal supplied nearly half of U.S. electricity. Even today, it fuels a substantial share of our power grid and powers key industries. In West Virginia, coal isn’t just an industry – it’s a way of life, supporting more than 90,000 jobs directly and indirectly.

And demand for reliable power is increasing, not shrinking. Data centers, AI infrastructure, and industrial growth require vast amounts of steady, dependable electricity. A Department of Energy report on the U.S. grid revealed that blackouts could increase by 100 times in 2030 if the U.S. continues to shutter reliable power sources and fails to add additional firm capacity.

As a former West Virginia State Representative, I’ve spent years fighting for miners and the communities that depend on them. I supported the “Stop the War on Coal Act” and pushed in Congress to expand carbon capture credits. With effective carbon capture, coal’s emissions profile would be comparable to wind, solar, hydro, and nuclear — eliminating the rationale for forced divestment. This technology could strengthen America’s leverage in global trade negotiations, especially as China and India expand coal use without comparable controls.

That’s why the Paxton lawsuit is so dangerous. It threatens the free-market principles that drive investment and innovation. When government uses litigation to bully private capital into divesting from or over-investing in certain industries, markets distort. Prices stop reflecting supply and demand and start reflecting fear of lawsuits.

For coal producers, that distortion is disastrous. Paxton’s lawsuit effectively tries to force major asset managers to dump their coal holdings creating a de facto divestment. Instead of protecting coal, the lawsuit could accelerate the very trend of disinvestment it claims to oppose — cutting off the capital coal companies need precisely at the moment when carbon-capture technology is making continued coal use cleaner than ever. Mines would slow production, hiring would freeze, and small firms and contractors in rural communities, the ones repairing equipment, hauling coal, and supporting operations would feel the blow first.

Instead of strengthening America’s energy future, this lawsuit would accelerate the trend of divestment, threaten grid reliability, and destroy thousands of good-paying jobs in an already vulnerable industry. Meanwhile, global coal investment, particularly in the Asia-Pacific region, continues to grow, leaving American producers to compete without the capital they need.

If the real goal is energy security and economic prosperity, this lawsuit misses the mark by a mile.

This divesture in coal will certainly set back America’s efforts in reducing greenhouse emissions by way of carbon capture research. And from my numerous conversations with political and energy voices in China and India, they are relying on our investments in carbon capture research to lead the way to a cleaner environment.

West Virginians, and Americans everywhere, deserve better than political posturing dressed up as policy. Coal built this nation. And with modern technology finally closing the emissions gap between coal and renewables, we should be leading — not retreating. With steady leadership, respect for free markets, and a focus on real — not performative – energy policy, coal can continue to power America’s future and keep our people working. Our communities are counting on it.

David McKinley represented northern West Virginia in Congress from 2010-2022, serving as the top Republican on the House Energy and Commerce Subcommittee on the Environment and Climate Change, and as Chairman of the Congressional Coal Caucus. He previously served in the West Virginia House of Delegates from 1980-1994.