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NYC's Biggest Pension Fund Lost $135 Million From Oil and Gas Holdings

A new report from Advisor Partners revealed that in one year alone, New York City’s largest pension fund lost around $135 million from their holdings in the top 100 oil and gas companies. The Teacher’s Retirement System of the City of New York, representing more than 200,000 teachers, educators and workers, incurred a 25 percent reduction in returns of their $60 billion fund from investments in oil and gas.

Protestors call on the State of New York to divest from fossil fuels. Photo credit: Adam Welz for 350.org / Flickr

“If it’s wrong to wreck the climate, it’s wrong to profit from that wreckage—but our city’s pension funds are incurring nothing but losses by investing in fossil fuels," Mimi Bluestone, a member of the United Federation of Teachers and a campaigner with 350NYC, said. “The money lost from oil and gas investments just in the last year is equivalent to putting about 7,000 students through school for a year. It’s time for New York City to get out of the business of climate destruction.”

The findings of this report add significant momentum to activists calling for fossil fuel divestment. Organizers with 350NYC have been campaigning for the city council to divest the city’s five pension funds from all fossil fuels for over three years. During the Paris climate talks, it was announced that more than 500 institutions representing over $3.4 trillion in assets under management have committed to some level of fossil fuel divestment.

ExxonMobil and Chevron were the largest contributors to the fund’s declining performance, causing losses surpassing $39 million. In November, New York Attorney General Eric Schneiderman launched an investigation into Exxon’s climate lies after groundbreaking reports revealed that the corporation knew about climate change for decades, yet poured resources into discrediting their research and sowing doubt among the public. California Attorney General Kamala Harris has also launched an investigation.

“Oil & gas companies are volatile investments. The fact that these companies underperformed both the U.S. and broader global index by more than 25 percent confirms the riskiness of these companies,” Rahul Agrawal, CIO of Equities for Advisor Partners, said. “Portfolio managers should carefully reassess their exposure to these securities before investing in them.”

New York City Comptroller Scott Stringer and Mayor Bill De Blasio have already issued urgent calls for the city’s pension funds to divest from coal. Coal is on its way out, oil prices are plummeting and major fossil fuel companies are filing for bankruptcy, slashing jobs and cancelling projects.

On Wednesday, prominent financial and political figures, including Scott Stringer, will gather at the United Nations for the Investor Summit on Climate Risk hosted by Ceres.

“The prudence of divesting from coal is so legible it is quickly becoming the norm. Oil and gas are on a more asperous decline, making it harder for investors to see the mounting risk associated with the industry. New York City’s pension funds need to divest now, as cautious, long-term investors,” Brett Fleishman, senior analyst with 350.org, said.

“With this summit happening right in their backyard, NYC’s comptroller and pension fund managers must communicate exactly what they’re doing to incorporate ever-increasing climate risk mitigation and to protect the future of New York City’s workers.”

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Trump's Response to Climate-Related Disasters: Open America's 'Crown Jewels' to Oil Drilling

By Andy Rowell

You would have thought that after being battered by two devastating hurricanes in recent weeks, which experts believe were fueled by warmer seas caused by climate change, even the most die-hard climate denier would think again.

But you would be wrong.

You would have thought that as the cost of rebuilding after Hurricanes Irma and Harvey mounts, with an estimated bill of $150 billion so far, that politicians would press to move away from a fossil fuel economy.

But you would be wrong again. In fact the opposite is happening.

Instead of pushing for clean technology and to end our oil addiction, the Trump administration is quietly pushing to open up one of America's great last wilderness areas, the Arctic National Wildlife Refuge, to oil drilling.

The Arctic National Wildlife Refuge—or ANWR for short—has been described as "one of the largest intact ecosystems in the world," and "the crown jewel of the National Wildlife Refuge System and one of the most important protected areas on Earth."

Anyone who knows about contemporary American petro-politics will know that the fight over ANWR is not new. It is a 40 year "multi-generational" fight. The naturalist, Peter Matthiessen, once called the battle over ANWR the "longest running, most acrimonious environmental battle in American history."

The oil industry and its allies have long salivated over the prospect of drilling in the refuge's 19.6 million acres. They have long argued that the refuge, home to caribou, polar bears and many endangered species, also houses an estimated 10 billion of barrels of recoverable oil.

There could be more oil, there could be much less, there could be none—no one really knows for sure.

The industry has wanted to drill the refuge for decades, but have been stopped by a determined coalition of environmentalists, First Nations and conservationists.

But for how much longer? When Trump became president he said that opening up ANWR was a top priority. And it seems that despite the recent Hurricanes, Trump is pressing ahead to do this.

As the Washington Post reported at the end of last week: "The Trump administration is quietly moving to allow energy exploration in the Arctic National Wildlife Refuge ... with a draft rule that would lay the groundwork for drilling."

Although the Trump administration is pushing for the move, the final say on whether drilling goes ahead lies with Congress.

But in the meantime, officials from the Interior Department—now stuffed full of pro-oil appointees—are quietly modifying a regulation from the 1980's that would allow the industry to undertake seismic surveys.

The Post acquired a leaked memo from the U.S. Fish and Wildlife Service acting director, James Kurth, to prepare an assessment and a proposed rule to update regulations which go back to the eighties.

Kurth wrote: "When finalized, the new regulation will allow for applicants to [submit] requests for approval of new exploration plans."

Once the rule is finalized, companies could bid to undertake seismic testing in the refuge.

Environmentalists are naturally outraged. Defenders of Wildlife president, Jamie Rappaport Clark, who led the Fish and Wildlife Service under President Bill Clinton, told the Post: "The administration is very stealthily trying to move forward with drilling on the Arctic's coastal plain ... This is a complete about-face from decades of practice."

"This is a really big deal," adds Niel Lawrence, Alaska director of the Natural Resources Defense Council. "This is a frontal attack in an ideological battle. The Arctic is the Holy Grail."

It looks like this battle will go to the courts. It could drag on for years. The stakes are huge. As Robert Mrazek, a former New York congressman and chair emeritus of the Alaska Wilderness League told a recent article in Fortune magazine: "ANWR is an American Serengeti. You can have the oil. Or you can have this pristine place. You can't have both. No compromise."

Sarah James, an ambassador for the Gwich'in First Nations, who lives close to the refuge and who opposes oil development, adds: "If you drill for oil here, you will be drilling into the heart of our people."

Manfred Bortoli

New Agreement Offers Brighter Future for Pacific Bluefin Tuna

By Amanda Nickson

The Pacific bluefin tuna is among the most depleted species on the planet, having been fished down more than 97 percent from its historic, unfished size. For years, this prized fish has been in dire need of strong policies that would reverse that decline, but the two organizations responsible for its management—the Western and Central Pacific Fisheries Commission (WCPFC) and the Inter-American Tropical Tuna Commission (IATTC)—failed in their recent efforts, allowing overfishing to continue and further risking the future of the species.

Last week, however, at a joint meeting of the WCPFC Northern Committee and IATTC, Pacific bluefin received a much-needed respite when its primary fishing nations—Japan, South Korea, Taiwan, Mexico and the U.S.—reached agreement with other member states on a long-term plan that would rebuild the population from its current status of 2.6 percent of pre-fishing levels to 20 percent by 2034. This agreement, if properly implemented, would start the species—and the fishing industry that depends on it—on a path toward sustainability.

After decades of inaction, why did these two fisheries management bodies agree to take the needed steps toward rebuilding? Because ignoring the problem became impossible for managers. In the past two years, three nations exceeded their catch limits. Amid increasing calls from The Pew Charitable Trusts and others for a complete fishing moratorium, and in a worst-case scenario, an international trade ban, the government representatives to the WCPFC committee and IATTC finally stepped up to make a change.

Perhaps most significant was the course reversal by Japan. By far the largest fishing nation for, and consumer of, Pacific bluefin, Japan had long resisted proposed rebuilding plans. This year, though, thanks in part to strong international pressure and growing media attention within the country on the plight of the species, the Japanese delegates dropped that opposition and helped make progress that just a few years ago seemed far out of reach.

Despite this commitment, the work to help Pacific bluefin recover has only begun. In the fishing season that ended on June 30, Japanese fishermen exceeded their catch limits by 334 metric tons, and with many reports of illegal fishing in Japan's waters, the real amount could be higher. The U.S., South Korea and Mexico also exceeded limits over the past two years. Rebuilding the species under the new quotas and timeline will be nearly impossible if such overages continue. All countries that fish for Pacific bluefin must pledge to strengthen their domestic controls and monitoring programs to guarantee that the commitments to rebuilding made this year are not squandered in the future.

The decision on Pacific bluefin made at the joint meeting could signal a move toward a greater focus on conservation at regional fisheries management organizations like the WCPFC and IATTC. This action by major fishing nations indicates that concrete action is possible. Fishermen and fleets now hold the key to a sustained recovery, and all countries must work together to uphold the new rules. If they can do that, real change on the water may come sooner than many of us expected.

Hurricane Irma damage in northeast Florida. St. Johns County Fire Rescue

Why Hurricanes Harvey and Irma Won’t Lead to Action on Climate Change

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Clustered disasters hold our attention in ways that singular events cannot—they open our minds to the possibility that these aren't just accidents or natural phenomena to be painfully endured. As such, they can provoke debates over the larger "disaster lessons" we should be learning. And I would argue the combination of Harvey and Irma has triggered such a moment.

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Naomi Klein Warns Europe May Water Down Paris Accord to Win Support from Trump

President Donald Trump on Tuesday is scheduled to address the United Nations General Assembly. Climate change is expected to be high on the agenda at this year's gathering.

As the world leaders meet, another major storm—Hurricane Maria—is gaining strength in the Caribbean and following a similar path as Hurricane Irma. The current forecast shows Maria could hit Puerto Rico as a Category 4 storm as early as Wednesday. The U.S. Virgin Islands, which were devastated by Irma, also appear to be in line to be hit by Maria.

Meanwhile, The Wall Street Journal reported over the weekend that the Trump administration is considering staying in the Paris climate agreement, just months after the president vowed to pull out of it. The White House denied the report. Secretary of State Rex Tillerson on Sunday signaled Trump may back away from the Paris accord, but National Security Adviser H.R. McMaster gave a different message on Fox News Sunday.

We speak with best-selling author Naomi Klein, a senior correspondent for The Intercept. Her most recent book, "No Is Not Enough: Resisting Trump's Shock Politics and Winning the World We Need," has been longlisted for a National Book Award.

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U.S. Army soldiers drive a woman to safety following flooding from Hurricane Harvey in Orange, Texas. Spc. Austin T. Boucher

Beyond Harvey and Irma: Homeland Security in the Climate Change Era

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Deployed to the Houston area to assist in Hurricane Harvey relief efforts, U.S. military forces hadn't even completed their assignments when they were hurriedly dispatched to Florida, Puerto Rico and the U.S. Virgin Islands to face Irma, the fiercest hurricane ever recorded in the Atlantic Ocean.

Florida Gov. Rick Scott, who had sent members of the state National Guard to devastated Houston, anxiously recalled them while putting in place emergency measures for his own state. A small flotilla of naval vessels, originally sent to waters off Texas, was similarly redirected to the Caribbean, while specialized combat units drawn from as far afield as Colorado, Illinois and Rhode Island were rushed to Puerto Rico and the Virgin Islands. Meanwhile, members of the California National Guard were being mobilized to fight wildfires raging across that state (as across much of the West) during its hottest summer on record.

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