Climate motions ‘hypocritical’ while councils invest millions in fossil fuels

Gwent councils “open themselves up to accusations of hypocrisy” by declaring climate emergencies while investing millions in fossil fuels, campaigners have warned.

Newport, Monmouthshire, Torfaen and Caerphilly have all passed motions committing to cutting carbon emissions in the coming years.

Together with Blaenau Gwent, the authorities pay into the Greater Gwent (Torfaen) Pension Fund which, in 2017, was revealed by Friends of the Earth (FoE) to be funnelling £245 million into fossil fuel firms.

The financial backing accounted for nine per cent of the total fund – the largest investment in fossil fuels in Wales, and the third-highest in the UK, at the time.

Torfaen council, which manages the fund on behalf of neighbouring authorities, say work has been done to reduce the fund’s carbon footprint.

Since 2017 the value of fossil fuel investment has increased by more than 10 per cent but the actual sum invested has fallen to £208 million – accounting for 6.95 per cent of investments.

But Bleddyn Lake, of FoE Cymru, urged the fund to divest, describing the remaining investment as “£208 million too much”.

While describing the climate emergency motions passed by councils as “heartening”, he urged councils to follow up with “emergency actions”.

“Climate change is the most pressing issue of our time,” said Mr Lake.

“One of the things that local authorities can do quickly is to vote to remove any investments, including pensions funds, from fossil fuel companies.

“By steadfastly refusing to divest these monies, they open themselves up to accusations of hypocrisy.

“Clearly by investing money in fossil fuel companies, they are supporting the business models of these climate wrecking companies and are also directly profiting from climate change.”

Cardiff council was due to vote on divesting money paid to fossil fuel companies from the Cardiff and Vale Pension Fund at a meeting today (Thursday, July 18).

A spokesman for Torfaen council said: “The Greater Gwent (Torfaen) Pension Fund has, over the last 18 months undertaken work through a member led working group to improve its understanding of the fund’s exposure to carbon with the clear goal to reduce carbon exposure over time.

“As part of this process, the Fund has changed its investment manager for its Global Equities and reduced the monies invested in the UK, both of which have had a positive effect in reducing our carbon footprint.

“Work is ongoing to reduce our carbon footprint further over time but in a planned and controlled way.”