Quantcast
Environmental News for a Healthier Planet and Life

Prince Charles Urges Investors to Divest From Fossil Fuels

Climate

The heir to the British throne, speaking to a gathering of some of the world’s leading investors controlling billions of dollars’ worth of funds, said it’s vital that finance markets send a strong signal to politicians about the need for a global agreement on climate change.

Prince Charles said global warming is an increasing source of risk to the financial community, and investing in projects that will help the world stay within a 2˚C rise in temperatures over pre-industrial levels need not hurt investment returns.

“All investors must decide whether they are future-takers or future-makers,” he said.

Fundamental Shift

Successive speakers at the meeting, held in the ornate surroundings of the City of London’s Guildhall, said that investors had to realize that a fundamental shift is taking place in the global economy—away from fossil fuel-led growth and towards a less carbon intensive, more sustainable future.

Investors were told they ignored this shift at their peril. By continuing to put money into fossil fuels, fund managers were placing their clients’ money at risk. Oil firms, even before the drop in oil prices, were delivering diminishing cash returns.

“We collectively sleep-walked into a global financial crisis,” said one investment fund manager. “We have no excuse for sleeping our way into a climate change crisis.”

Sarah Butler-Sloss, a co-founder of Europeans for Divest/Invest, a campaign that encourages individual investors, philanthropic organisations and pension funds to divest from fossil fuels, said that more than US$2.5 trillion of financial assets had so far been moved out of fossil fuels into renewables and other sectors.

The divestment campaign is expanding fast and enjoying a huge groundswell of grass roots support, Butler-Sloss said. “There will only be one eventual winner in this contest.”

Many universities, religious groups and other institutions have been among thosemoving their money out of fossil fuels.

In 2013. Norway, which has one of the world’s biggest sovereign wealth funds, announced it was taking its investments out of heavily carbonised sectors.

James Cameron, chairman of the UK’s Overseas Development Institute, and a leading figure in encouraging investments in low-carbon industries, said few had anticipated the pace of change away from fossil fuels in recent years, highlighting what he described as the phenomenal growth in renewable energy.

There are great investment opportunities, Cameron said.  “This is not some kind of green sand pit for investors to play around in. This [decarbonised economy] is a huge investment space.”

Although the assembled investment community seemed receptive to reconsidering their investment strategies, there were those who questioned the relative scale of the divestment campaign and speed of the shift to a decarbonised economy.

Market Share

The London stock exchange, one of the world’s biggest share markets, is still dominated by fossil fuel-related stocks, which account for 30 percent of the total value of the main index.

Some fund managers expressed concern about what they saw as a lack of investment products in the low carbon sector. Others said there was still not enough expertise about renewables and other decarbonised projects among firms managing investment funds.

“The fossil fuel companies have immense financial power and the lobbyists that support them are still very strong,” said one of those at the meeting.

“Big changes in the direction of investments are taking place, but it’s the pace of change that’s the important thing.

“And when you talk about the challenge of climate change, time is not on the world’s side.”

YOU MIGHT ALSO LIKE

It’s Time to Jump on the Train to the Future: All Aboard the Low Carbon Express

Remarkable Team of Scientists Run/Bike From North and South Poles to Paris Demanding Climate Action

Oslo Becomes First Capital City in the World to Divest From Fossil Fuels

‘Kick Big Polluters Out’ of COP21

EcoWatch Daily Newsletter

The Ernest N. Morial Convention Center in New Orleans, Louisiana has been converted to a 1,000-bed field hospital for coronavirus patients to alleviate stress on local hospitals. Chris Graythen / Getty Images

An area in Louisiana whose predominantly black and brown residents are hard-hit by health problems from industry overdevelopment is experiencing one of the highest death rates from coronavirus of any county in the United States.

Read More Show Less
A woman lies in bed with the flu. marka/Universal Images Group via Getty Images

A central player in the fight against the novel coronavirus is our immune system. It protects us against the invader and can even be helpful for its therapy. But sometimes it can turn against us.

Read More Show Less
Sponsored
Several flower species, including the orchid, can recover quickly from severe injury, scientists have found. cunfek / iStock / Getty Images Plus

Calling someone a delicate flower may not sting like it used to, according to new research. Scientists have found that many delicate flowers are actually remarkably hearty and able to bounce back from severe injury.

Read More Show Less
A Boeing 727 flies over approach lights with a trail of black-smoke from the engines on April 9, 2018. aviation-images.com / Universal Images Group via Getty Images

With global air travel at a near standstill, the airline industry is looking to rewrite the rules it agreed to tackle global emissions. The Guardian reports that the airline is billing it as a matter of survival, while environmental activists are accusing the industry of trying to dodge their obligations.

Read More Show Less
A National Guard member works on election day at a polling location on April 7, 2020 in Madison, Wisconsin. Andy Manis / Getty Images.

ByJulia Baumel

The outbreak of COVID-19 across the U.S. has touched every facet of our society, and our democracy has been no exception.

Read More Show Less