Metro mayor Dan Norris is calling on the region’s local government pension scheme to cut links with fossil fuels. The Labour head of the West of England Combined Authority (Weca), whose staff are members of Avon Pension Fund along with thousands of employees from the region’s four councils, has tabled a motion to the Weca committee on Friday calling on the scheme to “divest entirely from fossil fuel stocks” and commit to 2030 carbon neutrality.
Concerns have been raised that severing ties with traditional oil, coal and gas companies will also mean slashing investment in green energy because firms like Shell and BP are also world leaders in newer, clean technologies. And the flip side of that argument is that most of the biggest green power providers still earn a small proportion from older, dirtier resources, so divestment would withdraw funding for businesses critical to low-carbon goals.
But Mr Norris is siding with Green politicians, who are campaigning for divestment, and against some Labour ones who oppose the move. Mr Norris’s motion says: “In light of the climate emergency and the West of England’s 2030 net zero target, the West of England Combined Authority calls on the Avon Pension scheme to match this ambition by committing to having a carbon neutral pension fund by 2030 or earlier; and to divest entirely from fossil fuel stocks.”
Read more: Green demands for Avon Pension Fund to stop investing in fossil fuels sparks row
The metro mayor said: “There’s a climate emergency and that means everyone needs to do their bit, including local pension funds. People I speak to want their hard-earned pension savings to be secure, but they also want to make sure there is a world left worth retiring to for them and their children.
“If we’re going to build the sustainable society people want and deserve then divestment is vital and sometimes that means showing moral leadership. As metro mayor I am calling on the Avon Pension Fund to match our own ambitious West of England 2030 climate target and divest from fossil fuels by that date.
“I hope to see a step change as investors switch from carbon-intensive sectors and instead make long-term, regional investments that don’t harm our precious planet. I firmly believe the people are ahead of the politicians in wanting to take real, decisive action to tackle climate change.”
But concerns were raised by Weca overview & scrutiny committee on Monday. Chairman and Bath & North East Somerset Lib Dem Cllr Winston Duguid told the meeting: “Nobody is more committed to net zero than me, but there’s a huge recalibration going in the world in some fossil fuel companies who are moving to be major owners of sustainable alternatives.
“I think BP is the largest solar company in Europe, so it’s a worry being so blunt. Different fossil fuel companies are at different stages on the journey converting to net zero.”
Bristol Conservative Cllr Geoff Gollop said: “I’m not opposed to the concept of decarbonising, but I’m also not convinced that we should completely divest from companies that have something to do with fossil fuels. We might actually be misjudging those who are making significant investments to change the way they operate.”
Green councillors called on Avon Pension Fund to divest at a Bristol City Council meeting in April, insisting it was “fantasy” to believe net zero could be achieved by engaging with fossil fuel firms and that there were renewable energy firms with no links to old, damaging industries. Labour group leader Cllr Steve Pearce, the council’s representative on the local pension board, warned of “unintended consequences” and said it was “not a binary issue” because many traditional fossil fuel multinationals were leading investors in green energy.
The metro mayor’s motion will be decided by a vote of Mr Norris, Bristol’s Labour mayor Marvin Rees, South Gloucestershire Council Conservative leader Cllr Toby Savage and B&NES Council leader Lib Dem Cllr Kevin Guy, or their substitutes if any. North Somerset Council, whose staff are also in the fund, is not part of Weca.
Read next:
Avon Pension Fund has more than £130,000 invested in Russian firms
'Daunting' task to tackle climate crisis as WECA leaders finally approve action plan
Avon Pension Fund for council staff in Bristol region has investments in Russian assets
POLITICS: To keep up to date with latest Bristol politics news, and discuss thoughts with other residents, join our Bristol politics news and discussion here. You can also sign up to our politics newsletter here.
Click here for the latest headlines from in and around Bristol.
