Quantcast
Environmental News for a Healthier Planet and Life

Help Support EcoWatch

Tapping the Power of the Purse: Divest From Fossil Fuels, Invest in Clean Energy

Climate
Tapping the Power of the Purse: Divest From Fossil Fuels, Invest in Clean Energy

If you're reading this article, there is a good chance you've already taken steps to stop climate disruption. You probably ditched incandescent lightbulbs years ago. You may drive a hybrid or (even better) an EV. Some of you have installed solar panels on your homes. And a whole lot of you frequently fire off messages to elected representatives to let them know where you stand on fossil fuels.

Photo courtesy of Shutterstock

But there's more you can do to help the cause—two simple, related actions that President Barack Obama summed up succinctly during his climate speech last summer: "Invest. Divest."

It's potent advice, because the central challenge to achieving a fossil fuel-free economy is more financial than technological. We know how to make electricity from renewable sources, and there's enough untapped clean energy out there to power the global economy several times over. Unfortunately, our energy infrastructure and the institutions that finance it are stuck in a fossil fuel mind-set.

It's time to tap the power of the purse. The first step is to shift long-term investments away from the corporations that are doing the most damage to air, water and the climate. Private investors and anyone with ties to institutional investors can learn how to get fossil fuels out of their portfolios at gofossilfree.org.

If environmental concerns aren't reason enough to divest from the dirty energy sector, do it out of selfishness, because companies that depend on their fossil fuel reserves for future earnings are simply a bad investment these days.

Here's why: To avoid a full-blown climate catastrophe, humans must leave at least two-thirds of those untapped reserves in the ground. This "carbon bubble”—the overvaluation of fossil fuel companies based on reserves that must never be exploited and that organizations like the Sierra Club are tirelessly fighting to keep in the ground—explains why the divestment movement is spreading to foundations, pension funds and municipalities. And even analysts who don't mind profiting from pollution know that, sooner or later, all bubbles must burst. In addition to calling your stockbroker, you should look closely at your savings account, because there's a good chance it's being used to level Appalachia.

A report by the Sierra Club, Rainforest Action Network and BankTrack found that U.S. banks (including such behemoths as Chase and Bank of America) provided $20.8 billion in financing to "the worst of the worst" players in the coal industry in 2012. The good news: Thanks to online banking, it's simple to move your money to a credit union or a responsible institution like New Resource Bank. And credit card companies like One PacificCoast Bank (a Sierra Club partner) make it even easier to align your financial choices with your clean energy values.

Getting our money out of fossil fuels is only the beginning, however, because we also need to invest in clean energy. Traditionally, this has been done by buying green-tech mutual funds (which were up by 37 percent last year). Internet options like crowdfunding make it possible to target your investments even more precisely and to participate in projects once available only to large financial institutions. Last year, I used a company called Mosaic to invest a modest amount in a new community solar project in Oakland, CA. The return from my stake has been slightly better than the average interest from a corporate bond. But the important thing here is the cumulative impact of small investors like me. Since launching in 2010, Mosaic has channeled more than $6 million to clean energy projects with a current generating capacity of 17 megawatts.

Innovation is a powerful force, whether it's technological or financial, and our inevitable transition to clean energy is accelerating because of it.

——–

YOU MIGHT ALSO LIKE

Australians Divest From the ‘Big Four’ Banks That Fund Fossil Fuel Projects

Two New Reports, One Conclusion: Fossil Fuel Divestment Crucial to Combating Climate Change

Students Stage Day of Action As Harvard University Refuses to Divest From Fossil Fuels

——–

EcoWatch Daily Newsletter

A resident works in the vegetable garden of the Favela Nova Esperanca – a "green favela" which reuses everything and is subject to the ethics of permaculture – in the outskirts of Sao Paulo, Brazil, on Feb. 14, 2020. NELSON ALMEIDA / AFP via Getty Images

Farmers are the stewards of our planet's precious soil, one of the least understood and untapped defenses against climate change. Because of its massive potential to store carbon and foundational role in growing our food supply, soil makes farming a solution for both climate change and food security.

Read More Show Less
Once the virus escapes into the air inside a building, you have two options: bring in fresh air from outside or remove the virus from the air inside the building. Halfpoint Images / Getty Images

By Shelly Miller

The vast majority of SARS-CoV-2 transmission occurs indoors, most of it from the inhalation of airborne particles that contain the coronavirus. The best way to prevent the virus from spreading in a home or business would be to simply keep infected people away. But this is hard to do when an estimated 40% of cases are asymptomatic and asymptomatic people can still spread the coronavirus to others.

Read More Show Less
California Senator Kamala Harris endorses Democratic presidential candidate Joe Biden at a campaign rally at Renaissance High School in Detroit, Michigan on March 9, 2020. JEFF KOWALSKY / AFP via Getty Images

Former Vice President Joe Biden made a historic announcement Tuesday when he named California Senator Kamala Harris as his running mate in the 2020 presidential election.

Read More Show Less
An aerial view taken on August 8, 2020 shows a large patch of leaked oil from the MV Wakashio off the coast of Mauritius. STRINGER / AFP / Getty Images

The tiny island nation of Mauritius, known for its turquoise waters, vibrant corals and diverse ecosystem, is in the midst of an environmental catastrophe after a Japanese cargo ship struck a reef off the country's coast two weeks ago. That ship, which is still intact, has since leaked more than 1,000 metric tons of oil into the Indian Ocean. Now, a greater threat looms, as a growing crack in the ship's hull might cause the ship to split in two and release the rest of the ship's oil into the water, NPR reported.

On Friday, Prime Minister Pravind Jugnauth declared a state of environmental emergency.

France has sent a military aircraft carrying pollution control equipment from the nearby island of Reunion to help mitigate the disaster. Additionally, Japan has sent a six-member team to assist as well, the BBC reported.

The teams are working to pump out the remaining oil from the ship, which was believed to be carrying 4,000 metric tons of fuel.

"We are expecting the worst," Mauritian Wildlife Foundation manager Jean Hugues Gardenne said on Monday, The Weather Channel reported. "The ship is showing really big, big cracks. We believe it will break into two at any time, at the maximum within two days. So much oil remains in the ship, so the disaster could become much worse. It's important to remove as much oil as possible. Helicopters are taking out the fuel little by little, ton by ton."

Sunil Dowarkasing, a former strategist for Greenpeace International and former member of parliament in Mauritius, told CNN that the ship contains three oil tanks. The one that ruptured has stopped leaking oil, giving disaster crews time to use a tanker and salvage teams to remove oil from the other two tanks before the ship splits.

By the end of Tuesday, the crew had removed over 1,000 metric tons of oil from the ship, NPR reported, leaving about 1,800 metric tons of oil and diesel, according to the company that owns the ship. So far the frantic efforts are paying off. Earlier today, a local police chief told BBC that there were still 700 metric tons aboard the ship.

The oil spill has already killed marine animals and turned the turquoise water black. It's also threatening the long-term viability of the country's coral reefs, lagoons and shoreline, NBC News reported.

"We are starting to see dead fish. We are starting to see animals like crabs covered in oil, we are starting to see seabirds covered in oil, including some which could not be rescued," said Vikash Tatayah, conservation director at Mauritius Wildlife Foundation, according to The Weather Channel.

While the Mauritian authorities have asked residents to leave the clean-up to officials, locals have organized to help.

"People have realized that they need to take things into their hands. We are here to protect our fauna and flora," environmental activist Ashok Subron said in an AFP story.

Reuters reported that sugar cane leaves, plastic bottles and human hair donated by locals are being sewn into makeshift booms.

Human hair absorbs oil, but not water, so scientists have long suggested it as a material to contain oil spills, Gizmodo reported. Mauritians are currently collecting as much human hair as possible to contribute to the booms, which consist of tubes and nets that float on the water to trap the oil.

A northern mockingbird on June 24, 2016. Renee Grayson / CC BY 2.0

Environmentalists and ornithologists found a friend in a federal court on Tuesday when a judge struck down a Trump administration attempt to allow polluters to kill birds without repercussions through rewriting the Migratory Treaty Bird Act (MBTA).

Read More Show Less
A spiny dogfish shark swims in the Olympic Coast National Marine Sanctuary off the coast of Washington. NOAA / Wikimedia Commons

By Elizabeth Claire Alberts

There are trillions of microplastics in the ocean — they bob on the surface, float through the water column, and accumulate in clusters on the seafloor. With plastic being so ubiquitous, it's inevitable that marine organisms, such as sharks, will ingest them.

Read More Show Less

Trending

A "vessel of opportunity" skims oil spilled after the Deepwater Horizon well blowout in the Gulf of Mexico in April 2010. NOAA / Flickr / CC by 2.0

By Loveday Wright and Stuart Braun

After a Japanese-owned oil tanker struck a reef off Mauritius on July 25, a prolonged period of inaction is threatening to become an ecological disaster.

Read More Show Less