For some positive news regarding climate action, CleanTechnica has collected some of the best stories regarding divestment from fossil fuels in 2017. Organizations choosing to divest include banks, universities, and religious institutions.
What does divestment help to achieve? A team of researchers at the School of Environment, Enterprise and Development at the University of Waterloo recently conducted an analysis that suggests divestment announcements have a statistically significant negative impact on the price of fossil fuel shares.
Divestment announcements by prominent investors signal financial risks to the market, which, in turn, depress share prices. Therefore, divestment announcements can have a measurable impact on the fossil fuel industry. The study’s authors argue that decreasing share prices make acquiring financial capital more expensive for the fossil fuel industry. That lowers their ability to “explore new resources, exploit proven reserves, and secure long-term growth.” The results? Divestment can lead to lower fossil fuel productive capacity and lowered greenhouse gas emissions.
Divestment will continue to be an important tool in the fight to transition the world off of fossil fuels and onto renewable energy. It is something we can all inform and empower our communities to take action on. For more related news you can visit Go Fossil Free and the 350.org blog.