Since the clean-energy movement gains momentum, people become more aware of what their money is up to and many are looking for the green alternatives.
In this article, I will try to conclude why divest of fossil fuel is good or bad.
why divest is such a common term all of a sudden?
Nowadays profit-line is no longer the only thing investors care about.
Ideology and ‘Environmental Effect’ influence investors decision-making more than ever before.
‘Fossil Fuel Divestment’ or ‘Fossil Fuel Free’ movement is one of the outcomes of this phenomenon.
Start from the beginning, what are fossil fuels?
Fossil Fuels are coal, natural gas, and oil.
These fuels are actually masses of ancient flora and tiny animals (fossils) trapped underground or under the sea.
High pressure and Low oxygen level underground chemically converted these fossils into what we know as ‘Fossil Fuels’
What’s so bad about fossil fuel?
To use the energy trapped inside fossil fuels we most burn it.
The process of burning fossil fuels releases CO2 gases into the atmosphere, which is the main reason we have global warming.
What is divestment?
Divestment is the action of withdrawing money from a certain investment.
People divest for different reasons:
For more Info about divestment Read my article:
What Is Fossil Fuel Divestment? (All You Need To Know)
Why divest from fossil fuel?
Most people divest from fossil fuel out of pure environmental
ideology, they no longer want to give their money to contaminating
fossil fuel companies.
Others divest because of financial reasons: they believe the era of fossil fuel is over, and soon we will only be using renewable energy sources.
Either way, The fossil free trend is growing, as new financial ‘Fossil Free’ products join the market all the time to meet demand.
Fossil fuel divest cons
Fossil fuel divest pros
Examples of big organisations that divested
- New York City
- Leonardo DiCaprio Foundation
- Rockefeller Brothers Fund
- Guardian Media Group
- World Council of Churches
Examples of fossil fuel free mutual funds
- SPYX — SPDR S&P 500 Fossil Fuel Reserves Free ETF
- EFAX — SPDR MSCI EAFE Fossil Fuel Free ETF
- EEMX — SPDR MSCI Emerging Markets Fossil Fuel Free ETF
There’s big uncertainty about pulling your money out of fossil fuel investments.
It might be a smart financial move and it might not be.
At the end of the day, I think that putting your money where your mouth is, means more than just words.
And if you care about the environment – divesting is the right thing to do, even if you end up losing some money.
I do what’s In my power to stop climate change and this is why to divest is right for me.