10 September 2018

This article first appeared on The Guardian and is viewable online here.

As New York and London mayors, we call on all cities to divest from fossil fuels

Together, the world’s urban centres can send a message to the fossil fuel industry: join us in tackling climate change 

 Bill de Blasio is mayor of New York City and Sadiq Khan is mayor of London

This summer it seemed as if our two cities had changed places. London was hot and dry while New York had days and days of rain. According to leading scientists, the heatwave in Europe over recent months was made twice as likely by climate change resulting from human activity. There is also growing evidence of the link between climate change and the frequency of major floods, as well as the severity of hurricanes.

It’s clear that what we think of now as freak weather in our cities is likely to become the new normal, and that climate change poses a huge threat to the futures of our children, and many generations to come.

As mayors, we are not only committed to taking bold action to tackle climate change and to improve the lives of those we represent, but also to showing others the way. That’s why, ahead of the Global Climate Action Summit in California, we are calling on other cities to stand with us to divest their assets from fossil fuel companies. Today we are announcing a new global initiative for cities on divestment and sustainable investment. Working through the C40 Climate Leadership Group, London and New York will co-chair the Cities Divest/Invest forum, a global network for cities that will not only enable us to share tools, knowledge and experiences, but also to advocate for action on divestment and green investment.

London and New York are two of the world’s most dynamic, innovative and forward-thinking cities, and we are determined to push ahead with the goals of the Paris agreement – stealing a march on many national governments.

We know that tackling climate change requires action across the board – from how we run our transport networks to using cleaner energy and making our buildings more energy-efficient. But we must also use our economic might to accelerate the transition to a low-carbon economy.

We believe that ending institutional investment in companies that extract fossil fuels and contribute directly to climate change can help send a very powerful message that renewables and low-carbon options are the future. If we want to fund the scale of transformation the world needs, we must foster sustainable investment and use the power of institutional investors, such as pension funds.

That’s why – in both London and New York – we are taking all possible steps to divest our city pension funds from fossil fuels.

Already, less than 2% of the London Pension Fund Authority’s investments of £5.5bn ($7.1bn) are in extractive fossil fuels – this year, the authority has rid itself of a further £700,000 of fossil fuel investments, including stakes in Shell and BP, and has plans in place to divest its remaining investments.

In New York, divestment is under way, with the goal of total divestment within five years. This will mean removing some $5bn (£3.8bn) in investment from the industry.

Both our cities are also investing in a sustainable future. London recently launched the £500m Mayor’s Energy Efficiency Fund, working with the European Regional Development Fund and private sector investors to help hospitals, museums, offices, libraries, social housing and universities to become greener and more energy efficient.

New York City has increased its solar-energy capacity six-fold since 2013 and is investing $2.7bn in energy-efficiency projects that save New Yorkers money and cut emissions. City government now has more than 1,200 electric vehicles and 500 charging stations.

Of course, we acknowledge that divestment and accelerating green investment is not always straightforward. The major portfolios held by public entities are typically pension funds, which aren’t generally under the control of mayors. But we can make progress if we work together with a range of partners – including pension funds, local authorities, campaign groups and the private sector.

We believe we can demonstrate to the world that divestment is a powerful tool and a prudent use of resources. And that, together, our cities – New York, London and many others around the world – can send a clear message to the fossil fuel industry: change your ways now and join us in tackling climate change.

Climate change knows no borders, and taking this kind of action now could help us make a crucial difference to the people we represent and the future of our planet.

 Bill de Blasio is mayor of New York City and Sadiq Khan is mayor of London

 

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