The world has to stop using fossil fuels, but investment in the sector continues unabated. Investors of all kinds, including banks, insurance companies and pension funds, are hesitant about making the change to sustainable energy and are not sure where to start. In the autumn of 2019, together with the DivestInvest Network and Sustainable Energy (Denmark), Both ENDS published a report entitled ‘Managed Decline of Fossil Fuel Businesses’. The report describes five criteria to test whether companies in the fossil sector are actively taking steps to wind down their fossil activities. The criteria are helping investors to choose investments that are in line with the Paris goal of restricting global warming to a maximum of 1.5 degrees Celsius. We spoke to Lars Jensen, Senior Analyst at Sustainable Energy and lead author of the report.
In 2011 one of the world’s largest gas reserves was found in the coastal province of Cabo Delgado, in the north of Mozambique. A total of 35 billion dollars has been invested to extract the gas. Dozens of multinationals and financiers are involved in these rapid developments. It is very difficult for the people living in Cabo Delgado to exert influence on the plans and activities, while they experience the negative consequences. With the arrival of these companies, they are losing their land.
Last June, after months of negotiations in five different 'climate roundtables', the Dutch government presented its Climate Agreement . Negotiations had taken place in a roundtable for 'industry', for 'built environment', for 'electricity', 'mobility' and for 'agriculture and land use'. Climate measures that the Netherlands can take within its borders are pretty much covered by these climate roundtables. But the Netherlands also has a huge climate footprint outside its borders. It seems we have forgotten about the 'International' Climate Roundtable.
Amsterdam, 23 September 2019 - The world's 5th largest pension fund, with assets of over €430 billion, Dutch ABP is continuing to invest in companies that are on a collision course with the Paris climate goals, such as coal and oil companies.
Reward high-risk international business projects investing in a green future and stop support for the international fossil industry
The climate is 'hot'. Everyone is talking about it. 'Everyone needs to do something' calls the government in its recently started public campaign. Good plan. Let's really do something. For a start, we can stop supporting international trade in fossil energy by our own multinationals. That would free up 1.5 billion euros which we could use to combat climate change on an international scale and at the same time give our own innovative businesses a boost. Today's Vergeten Klimaattafel (Forgotten Climate Roundtable) will discuss the opportunities for the Netherlands to have a real impact. And those opportunities are enormous. Because our big money and our influence lie beyond our borders.
Good news for the climate: last week, the European Investment Bank (EIB) decided to stop investing in fossil fuels by 2021. This is part of its new energy strategy.