Bill passed by parliament means more than €300m shares in coal, oil, peat and gas will be sold ‘as soon as practicable’
Thu 12 Jul 2018
The Republic of Ireland will become the world’s first country to sell off its investments in fossil fuel companies, after a bill was passed with all-party support in the lower house of parliament.
The state’s €8bn national investment fund will be required to sell all investments in coal, oil, gas and peat “as soon as is practicable”, which is expected to mean within five years. Norway’s huge $1tn sovereign wealth fund has only partially divested from fossil fuels, targeting some coal companies, and is still considering its oil and gas holdings.
The fossil fuel divestment movement has grown rapidly and trillions of dollars of investment funds have been divested, including large pension funds and insurers, cities such as New York, churches and universities.
Supporters of divestment say existing fossil fuel resources are already far greater than can be burned without causing catastrophic climate change and that exploring and producing more fossil fuels is therefore morally wrong and economically risky. However, some critics argue say that remaining as shareholders and persuading fossil fuel companies to change can be more effective.