University of California To Divest From Fossil Fuels
Citing "financial risk" as the reason, the University of California System is in the process of divesting approximately $150 million in fossil fuel investments from its $13.4 billion endowment and its $80 billion retirement fund.
According to a Calmatters article: “We believe hanging onto fossil fuel assets is a financial risk,” chief investment officer Jagdeep Singh Bachher and Richard Sherman, chair of the university regents’ investment committee, wrote in an opinion piece published in the Los Angeles Times."
However the move by the U.C. was not without criticism according to the Calmatters article:
...... Divestment as a strategy, however, is not without its critics. Some climate experts argue that while fossil fuel companies derail many efforts to reduce emissions, some of them nevertheless must play a role in any transition to a low-carbon future.
“Divesting from all fossil fuel companies turns the climate problem into something that seems like a simple problem, and in fact it’s the opposite,” said David Victor, a professor at UC San Diego’s School of Global Policy and Strategy who studies climate regulations. He cited efforts by European oil and gas companies to develop carbon capture technology and hydrogen pipelines.
“We should be shareholders in those companies, and we should be active shareholders, to make sure that they’re actually doing it,” he said. .....