State Treasurer Marlo Oaks (R-Utah) said that despite the Security Exchange Commission’s (SEC) decision to withdraw its proposed inclusion of Natural Asset Companies (NACs) in the New York Stock Exchange (NYSE), there is still a "global push to use the land to address climate change and ultimately to change our economic system.”
Federal Newswire reported that (NACs) were initially proposed for inclusion on the NYSE by the SEC, but public resistance led to the SEC's withdrawal in January. Despite this setback, there's ongoing advocacy for NACs' integration into public markets.
Additionally, NACs are included in the current administration's Natural Capital Accounting strategy.
Public concern and outrage surrounding the SEC's proposal, especially its perceived threat to essential economic activities, have been palpable, according to Oaks. The prospect of NACs included as a new asset class and company structure underscores the potential for significant investment.
In an interview with Federal Newswire, Oaks said the "goal is to create not just a new kind of company, but also a new asset class. A new company might attract millions or billions of investment dollars.”
Highlighting separate efforts from the White House to value ecological services and establish ecological performance reporting standards, Oaks warned that NACs pose a tangible threat by enabling external entities to control land for non-economic purposes. Doing so, he said, could potentially disrupt vital economic activities like agriculture and energy extraction.
He cautioned against the encroachment of private interests into land management, including foreign-controlled entities, in states with substantial federal land holdings, such as in the western part of the U.S.
According to Oaks, a mixed-use approach to land management can be effective, highlighting the importance of local stewardship and economic viability.
“The mixed-use approach to managing public lands in Utah and the care farmers and ranchers have for their land are far more effective than a proposal that involves prohibiting productive uses of the land by assigning an arbitrary value and placing the lands under the control of private investors, including foreign actors, who cannot possibly care about the land more than those presently managing it,” he said.
Oaks said that valuing and managing land to maximize ecological services, rather than solely for economic gain, through mechanisms such as conservation leases and easements to achieve this objective, is more sustainable than the prohibition of extractive activities on NAC-managed land.
Appointed by Gov. Spencer Cox (R-Utah) in November 2022 with a background in money management and economics, Oaks remains a vocal critic of NACs, advocating for a balanced approach to land management that prioritizes sustainability and economic vitality.
