Communist China Lurking Behind Money Trail Funding Anti-Energy Climate Activism, Financial Records Show

Progressive environmental advocacy groups that support carbon tax schemes under the guise of climate change have received financial support from foundations tied in with Communist China, an analysis of financial records shows. 

The Natural Resources Defense Council, the Sierra Club, The League of Conservation Voters, the Environmental Defense Fund, and Earthjustice are among the groups receiving this support while lobbying in favor of higher energy costs. The NRDC and Sierra Club stand out from the pack as they have repeatedly come under congressional scrutiny for allegedly operating as foreign agents. Each group has either testified or expressed support for The Regional Greenhouse Gas Initiative (RGGI), a multistate climate initiative built around "cap and trade" regulations that create carbon taxes. 

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The Axis of Green Dark Money

The Energy Foundation China, a nonprofit officially headquartered in San Francisco, and its former U.S. affiliate, sit at the center of this intrigue, according to a new report from State Armor, a research and education organization devoted to ensuring the national security of the United States. The money trail leading back to Chinese Communist Party (CCP) could potentially be a factor in this year's gubernatorial races where RGGI, and its carbon taxes, are expected to be hot topics. Organizations that support RGGI have endorsed the Democratic candidates for governor in Virginia and New Jersey. These include organizations that have received financial support from the Energy Foundation China and its former affiliate known simply as the Energy Foundation, also based in San Francisco. 

In Virginia, former Democratic congresswoman Abigail Spanberger has gone on record saying that as governor she would have her state rejoin the climate change initiative. Glenn Youngkin, the incumbent Republican governor, withdrew Virginia from RGGI in 2023 after describing the program as a "regressive tax on families and businesses." Lt. Gov. Winsome Earle-Sears, the Republican candidate running against Spanberger, supported Youngkin's decision to withdraw. Virginia law limits the governor to serving one consecutive term. 

In New Jersey, Republican Jack Ciattarelli, a former assemblyman and businessman now running for governor, has explicitly said he will pull his state out of RGGI. He has also come out hard against offshore wind, which has become increasingly unpopular in the state. Mikie Sherrill, the Democratic candidate, has not taken a specific stance on RGGI thus far. But as a current member of Congress, she has racked up a record as a climate activist who supports Green New Deal type schemes. Gov. Phil Murphy, the Democratic incumbent, has been a supporter of RGGI. He is set to leave office in January after serving two terms. 

China's Strategic Objectives 

The green groups now backing RGGI—and the political figures committed to supporting RGGI—have received significant financial support from the Energy Foundation network. State Armor's findings demonstrate how the palpable connections between Communist China and the progressive U.S. climate movement fit into a broader strategy. The goal, the report explains, is to coerce the U.S. into transitioning away from fossil fuels so it becomes dependent on green technology where China is dominant. State Armor also makes the alarming observation that the CCP has already increased U.S. dependence on China's batteries, solar panels, and electric vehicles. 

The "cap and trade" regulations and the carbon taxes they impose on energy consumers could further China's strategic objectives as they are designed to constrict fossil fuel use. RGGI currently includes 11 New England and mid-Atlantic states. The outcome of the gubernatorial races could determine the program's future. 

The green groups lobbying in favor of RGGI have a long history of supporting the two Democratic candidates. The NRDC Action Fund, the political arm of the NRDC, has consistently endorsed Spanberger and Sherrill during their congressional runs. So has the Sierra Club, which already endorsed Sherrill for governor. The group has not yet made an endorsement for governor in Virginia, but it has previously supported Spanberger's campaigns. 

Other endorsements from groups that have received grants from the Energy Foundation network such as the Environmental Defense Fund, and Earthjustice could be forthcoming. Here is how State Armor describes the history and origins of the China-backed foundations:

While the Energy Foundation China is registered as a 501(c)(3) nonprofit headquartered in San Francisco, CA, it is led by Ji Zou, a former official of an influential Chinese government agency, and most of its employees are in Beijing. Energy Foundation China used to be known as the Energy Foundation before it spun off most of its U.S.-based operations in 2019 into a separate organization called the U.S. Energy Foundation. While still formally organized as the Energy Foundation, since 2019, the organization has used the alias “Energy Foundation China” or “EF China” to differentiate from the now-separate U.S. Energy Foundation. The group was founded by Hal Harvey, a climate activist and entrepreneur with deep ties to numerous left-wing organizations and to China. In 2023, Energy Foundation China reported a total of over $84 million in revenue. Known funders of Energy Foundation China include the MacArthur Foundation, Sequoia Foundation, Children’s Investment Fund Foundation, ClimateWorks Foundation, and Hewlett Foundation.

State Armor's report also highlights the extensive ties between Ji Zou and other top foundation personnel in the Chinese Communist Party (CCP). For example, Hongjun Zhang, a board member of the Energy Foundation China, previously served as a legislative director in China's National People's Congress. 

But the China connections are not just a question of personnel. 

The CCP's National Development and Reform Commission (NDRC) closely monitors and controls the Energy Foundation China, according to the report. Although the foundation is ostensibly headquartered in San Francisco, the report makes it clear the foundation primarily functions out of a building in Beijing while delivering grants to CCP-controlled agencies.

But for purposes of the Virginia and New Jersey governor's races, it's important to take a look at how the China foundation and its U.S. affiliate have contributed to climate activists in the U.S. Here are a few examples of Energy Foundation grants delivered to RGGI advocates Influence Watch collected before the 2019 spinoff:

• The NRDC received more than $2.7 million in 2016, more than $2.5 million in 2017 and more than $1.4 million in 2018.
• The Sierra Club Foundation received $3 million in 2013, $2 million and $1.75 million in 2014.
• Between 2001 and 2018, Earthjustice received $6.4 million, and the League of Conservation Voters Education Fund received $3.2 million.

 Another major player here is the Sea Change Foundation, also based in San Francisco. Congressional investigators have identified the Sea Change Foundation as another major conduit for foreign funding of green activists. The Energy Foundation is the single largest grant recipient of Sea Change, according to Influence Watch. Between 2007 and 2018, financial records show the Sea Change paid out $125 million to the Energy Foundation. 

Candidates receiving funding and support from green groups that trace back to the CCP face credible charges of undue foreign influence over public policy—especially where it concerns carbon taxes and other green schemes.

(READ MORE: Virginia Democrat Poised to Impose Carbon Taxes as Governor)