Divestiture movement continues as organizations clean carbon holdings from portfolios
If you thought the divestiture movement was losing steam, Norway’s recent announcement shows there still is momentum around the world to stop investing in fossil fuels.
The country has confirmed that its hefty $900-billion government pension fund, considered the largest sovereign wealth fund in the world, will purge some of its fossil fuel stocks.
Many other organizations have made similar moves in past years.
Concordia University in Montreal launched a $5-million fund dedicated to divestment, social and ethical investing. Stanford University in California pledged not to make direct investments in companies whose principal business is coal for energy. The Rockefeller Brothers Fund pledged to reduce investments in coal and the oilsands projects to less than one per cent of its portfolio.
But in Canada, divestiture may not be the best method of promoting renewable energy development.
Traditional oil, gas and coal companies are creating the majority of renewable energy in Alberta. (Kyle Bakx/CBC)
The reason is that, outside of government, it is the traditional oil and gas companies that are constructing much of the green energy projects in the country, such as wind, hydro and solar.
For instance, the largest wind and hydro projects in Alberta are owned in whole or in part by traditional oil, gas and coal companies.
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Capital Power is an example of a private sector company with a mixed bag of energy projects. It’s a leader in renewable energy development and uses fossil fuels too. The Edmonton-based company has more than 20 wind and solar power plants in North America. It also operates a coal mine as well as several coal- and natural gas-fired plants.
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