D.C. pension board ignites debate

D.C. pension board ignites debate pulling direct investments fossil fuels

 

D.C. pension board ignites debate after pulling ‘direct’ investments from fossil fuels

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Bitcoin ETF Update: Will Bitcoin Continue Trending Higher

On Tuesday, the D.C. Council unanimously passed a resolution supporting the divestment of the city’s $6.4 billion pension fund from direct investments in 200 fossil fuel companies. Climate advocacy groups praised the decision, while critics dismissed it as merely symbolic.

The council’s vote comes after a three-year effort led by DC Divest, an organization dedicated to divestment. Council member Charles Allen joined DC Divest at a press conference on Monday to commend the D.C. Retirement Board for their actions.

“I commend the D.C. Retirement Board for making a commendable decision that benefits all residents of Washington,” stated Mr. Allen, a Democrat representing Ward 6. “Historically, divestment has proven to be a powerful tool for positive change. By divesting from fossil fuels, D.C. has paved the way for a more promising and sustainable future.”

Matt Grason, spokesperson for DC Divest, expressed his appreciation, saying, “The nation’s capital has taken an important stride in generating the necessary political determination for climate action.”

Critics of divestment argue that the recent decision made by the pension board holds little significance because, like many institutional investors, the majority of their portfolio consists of investments in mutual funds, co-mingled funds, and private equity, which indirectly invest in fossil fuels. While the board has divested from direct holdings, this approach is seen as a way to appease divestment activists without incurring the costs associated with eliminating all investments in fossil fuels. This strategy has become known as the “Syracuse model” after Syracuse University’s similar decision in 2015 to remove its direct investments in fossil fuel companies. Full Story

 

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