(The Berlin skyline)
The city of Berlin is doing its part to combat climate change, voting last week to purge the German capital’s pension fund of its investments in fossil fuels. Berlin’s parliament passed the legislation as part of the city’s long-term goal to become “climate neutral” by 2050.
The new policy will rid the $852.8 million fund of investments in RWE and E.ON – two German companies – as well as the French company Total.
Berlin joins a group of other Western cities acting as examples for the divestment movement, which looks to eliminate investments in dirty energy in order to lessen the financial incentive of investing in fossil fuels.
Other cities that have taken a similiar stand against dirty energy include Stockholm, Paris, Copenhagen, Oslo, Seattle, Portland, and Melbourne.
According to the activist nonprofit We Are Power Shift, a group that promotes divestment as a strategy for fighting climate change, the divestment movement
…started on university campuses, but has spread to cities, faith-based institutions, foundations, pension funds, and more, all over the world. Our goal is to diminish the influence and power of the fossil fuel industry in the market, our political system, and in the social conscience overall.
Christoph Meyer – a leading campaigner with Fossil Free Berlin – remarked on the Berlin parliament’s decision:
Berlin’s decision to blacklist fossil fuel companies is the latest victory for the divestment movement, which serves to remove the social license from companies whose business model pushes us into climate catastrophe. We will keep a close eye on the administration to make sure it upholds today’s commitment and urge the city to now take quick steps to break its reliance on coal power.
While there is debate about the effectiveness of divestment, advocates see it as a strategy to speed up the process through which investments become “stranded.” As public attention grows and support for regulation intensifies, the idea is for investors writ large to grow weary of such ventures due to the prospect of further diminishing profits.
As more of the world’s biggest urban centers jump on board, it’s safe to say that this push is gaining more-and-more momentum.