No More Dirt - New York Is Serious About It

After the public adherence to the goals of the Paris climate agreement and a commitment to 50 percent renewable energy in the state's electricity mix by 2030, massive financial injections for offshore wind energy research followed. Now the money is to be withdrawn directly from the fossil energy producers. New York State governor, Andrew M. Cuomo, takes his campaign against fossil energy seriously. The New York State Common Retirement Fund is to part with all investments in fossil fuels as of next year in order to further advance the energy transition.

The NYS Common Fund is the third largest US fund and manages over $200 billion of retirement assets for more than one million New Yorkers. In order to achieve Cuomo's goal, an advisory board joined by Tom DiNapoli will be set up to "de-carbonise" the fund's portfolio. The board will also identify ways of combating climate change and supporting clean tech industry, while minimising financial risks to the fund and protecting its continued existence.

The governor hopes that this measure will send a clear signal to the financial markets that major investors, including the State of New York, will unrestrictedly and aggressively support a carbon-free, clean energy future. To this end, investments will also be made directly in renewable energies in the future.

Andrew Cuomo has announced his plan on Twitter (Graphic: Twitter-feed Andrew Cuomo)

"New York has made incredible strides in securing a clean energy future for this state with our nation-leading clean energy standard, off shore wind development, and aggressive investment in the clean tech economy, yet the Common Fund remains heavily invested in the energy economy of the past. Moving the Common Fund away from fossil fuel investments will protect the retirement savings of New Yorkers," Governor Cuomo said. "This proposal lays out a roadmap for New York's $200 billion Common Fund to take responsible steps to divest from its fossil fuel holdings, leading to a more secure retirement fund for countless New Yorkers while also helping to achieve the state's clean energy goals."

In 2017, the Common Fund has listed more than 50 oil and gas companies, including ExxonMobil, among the 100 most carbon-intensive companies in the world. This number has increased since 2016. With its money, the fund would help these companies to survive and continue to produce dirty energy.

It gets lonely around the producers of fossil fuels (Picture: Pixabay)

However, support for these energy producers is increasingly crumbling: the World Bank has recently announced that it would cease its support for such companies within two years. The world's largest state fund in Norway has also announced its withdrawal from the fossil energy industry.