Dirty energy comes under fire as council moots divestment from fossil fuels

Fired up: campaign group Divest Hackney at a debate in November. Photograph: Divest Hackney

“Hackney has to be at the cutting edge of fighting global warming,” the vice-chair of Hackney Council’s pensions committee, Councillor Michael Desmond, said at last week’s meeting on divestment.

The committee invited a panel of experts on Thursday 28 January to launch its review into the council’s investments in fossil fuels.

Hackney Council currently has £42m invested in the the oil, gas and coal industry through its pension fund. Following increasing local pressure from campaign group Divest Hackney, in September the pensions committee agreed to a review of its fossil fuel investments.

Following the meeting the panel agreed to prepare a strategy paper that will outline their approach to climate change and investments in fossil fuel companies. In September the officers will invite the committee to approve their proposals, which could be a series of changes in how they invest their money.

But the council has not yet made any firm commitments – it has only endorsed recommendations.

Chris Venables, spokesperson for Divest Hackney, said: “Our response is one of congratulations and thanks – but it doesn’t stop here. We need to make sure the decision to divest actually goes through. We’ve got to keep the heat on.”

Sophie Barnes, Divest Hackney member, and Hackney resident said: “We welcome the proposals outlined by the Pensions Committee yesterday. We look forward to seeing how their proposals develop into concrete plans over the coming months.

“When they make their full announcement in September, we are hopeful that Hackney will become the most progressive local government pension scheme in the country when it comes to accounting for the financial risks of climate change.”

Last month in neighbouring Haringey, the council pledged to invest £200 million – one third of its equity funds – into a low carbon fund.

This means Haringey Council will have no investments in coal industries. It also agreed and to explore investing in the low carbon economy, such as renewable energy.