Follow us on Twitter Follow us on Facebook View our linked in profile View our RSS feeds
SustainableBusiness.com
 
News
Your daily source for sustainable business & sustainable investor news.

(view sample issue)


This is an archived story. The information and any links may no longer be accurate.

04/26/2013 11:59 AM     print story email story  

10 Cities Divest From Fossil Fuel Investments

SustainableBusiness.com News

In December, Seattle was the first city to announce it would divest from fossil fuel investments and now nine other cities have joined in.

The nine cities are: Madison, WI; Bayfield WI; Ithaca, NY; Boulder, CO; Rochester, MN; Eugene, OR; Richmond, CA; Berkeley, CA; and San Francisco, CA.

The goal is to unhook America from the grip of the industry, which is preventing us from addressing climate change and forcing the Keystone pipeline through.   

"Cities that do so will be leaders in creating a new model for quality of life, environmental sustainability and economic success. We've got a head start on that here in Seattle, but there's a lot more work to do," says Seattle Mayor Mike McGinn.

San Francisco's Board of Supervisors voted unanimously this week to urge its $16 billion pension fund to divest over $583 million from the fossil fuel industry.

Elsewhere, mayors have agreed to pursue ways to keep their city funds out of fossil fuel companies and urge either their city or state pension fund to divest.

Divest1

The city and state divestment campaign is led by the Mayors Innovation Project and 350.org.

"Cities are taking the lead on climate change" says Joel Rogers, Director of the Mayors Innovation Project. "In the face of federal and state inaction, cities know they have to protect themselves."

"Richmond is home to the 2nd largest oil refinery and largest point source of greenhouse gas emissions in California," says Mayor  Gayle McLaughlin. "I am proud to join with other cities in this divestment campaign, as we divest from an industry that is wreaking havoc on our community and planet, and reinvest in a clean energy economy with new jobs for our residents."

Petitions for divestment are active 100 other cities and states. Modeled on the anti-apartheid campaigns of the 1980s, the fossil fuel divestment campaign started last fall at colleges and universities and has now spread to over 300 campuses across the country.

Four colleges - Unity, Hampshire, Sterling, and College of the Atlantic - have so far agreed to divestment.

The campaign is targeting the 200 companies that own most of the world's coal, oil and gas reserves. Those reserves contain five times more carbon dioxide than scientists say society can emit and still keep global warming below 2°C, a limit that nearly every country on Earth, including the US, has agreed to meet.

There's no need for fossil fuels to maintain a well-balanced portfolio. Not having those investments increases risk by just 0.01%, according to a study by financial advisory Aperio Group, and the report's author Patrick Geddes, says of the investments,  "Statistically, it's basically noise." 

In fact, it's riskier to remain invested in fossil fuels. Companies will plow some $6 trillion to explore and develop reserves over the next decade, but that will be wasted on oil and coal that can't be burned as governments move to limit carbon emissions.  

The write off of those reserves could lead to a 60% drop in market value BP, Shell, Chevron and their peers.

"Today's announcement sends a powerful message to the fossil fuel industry: if you're going to try and take away our planet, we're going to try and take away your money. We're no longer just playing defense against dirty projects like the Keystone XL pipeline, we're going on offense, too," says 350.org.

When the campaign began in October, Nobel Prize-winner Desmond Tutu noted, "The divestment movement played a key role in helping liberate South Africa. The corporations understood the logic of money even when they weren't swayed by the dictates of morality. Climate change is a deeply moral issue too, of course ... Once again, we can join together as a world and put pressure where it counts."

State Department to Make Keystone Comments Public

Meanwhile, after being pressured, the State Department agreed to make the more than one million comments it received on the Keystone pipeline open to the public on Regulations.gov.

They are working on the technical details of doing so now.

Comments are typically made public, but if they're aren't, it takes a Freedom of Information Act request to get them. By the time they are received, the debate on Keystone could well be over.

"This shows the State Department is capable of posting public comments," Sofia Plagakis from the Center for Effective Government, told InsideClimate News. "So there would be no excuse not to do so in the future, but it may depend on continued pubic pressure."

"At the same time, the State Department has not responded to a series of requests under the Freedom of Information Act for access to other documents related to the Keystone environmental assessment and permit process, including third-party reports used during the writing of the draft impact statement, information about TransCanada's oil spill emergency plans, and information about contacts between state department officials and lobbyists for the pipeline," notes InsideClimate News.

Read the full story:  

Website: http://insideclimatenews.org/news/20130425/state-department-will-make-keystone-public-comments-public-after-all?page=1



Reader Comments (3)

Author:
greengoddess1

Date Posted:
04/26/13 07:59 PM

"voted to urge"? "agreed to pursue ways to"? This is not divestment; this is lip service. When they have actually put the moves in place to actually divest, then this headline will be warranted. Don't get me wrong; I agree with the concept.

Report this post

Author:
MJ

Date Posted:
05/22/13 02:25 PM

Go ahead and divest, so I can buy up some discounted shares of energy stocks. Just as long as you progressives do not go running to the Federal govt. for a bailout once you realize it is not a good idea to invest your workers pensions based on politics and flawed logic, rather than business sense and common sense.

Report this post

Author:
GreenEdge

Date Posted:
07/10/13 12:55 PM

When the World Bank, G20, G8 and the president of America say climate change is real and we have to do something about it (as they have all said in the past month), the inevitable target is going to be a cap on the amount of energy that is allowed to be provided by oil. That is now not far off. Whoops. What happens to all that oil still in the ground that can't be pumped because that will take us over the cap limit. Stranded assets that's what. No wonder the fossil fuel industry and its fellow-riders are so angry with those who see the future. But they can't stop it coming. Smarter to divest now.

Report this post

Add Your Comment

(Use any name, your real name is not required)
Type the characters you see in the picture below.

home |about us |contact us |advertise |feeds |privacy policy |disclosure

Compare Green Cars   |   Find Alternative Fueling Stations