author

Author: Don Obrien

Under student pressure, U of Minn. to phase out fossil fuel investments


The University of Minnesota is planning to pull out of all investments it’s made in fossil fuel-related companies over the next five to seven years amid pressure from students who want the school to do more to fight climate change.

The U shared new details about its intention to move away from fossil fuel investments this week, days after student government leaders at the Twin Cities campus renewed demands for the state’s flagship university to divest from coal, oil and natural gas.

“Students and community members have been pushing for this for so many years at this point,” said senior Maddie Miller, environmental accountability committee director for the Minnesota Student Association, the U’s undergraduate student government. “This is just one really small step in the grand scheme of things.”

Across the country, college students concerned about climate change are pushing their schools to divest from fossil fuels. Earlier this month, Harvard University announced it would divest its endowment from fossil fuels. Two of the U’s Big Ten peers, Rutgers University and the University of Michigan, have also chosen to disinvest from fossil fuel-related companies.

In Minnesota, St. Olaf College has committed to phasing out its fossil fuel investments and Macalester College announced in August it would divest from all dedicated, publicly traded oil and gas assets.

Just over 4% of the U’s $1.75 billion central endowment is invested in fossil fuel-related companies, according to a university statement.

University leaders say the school will make no direct investments in carbon 200 companies — a list of the largest owners of carbon reserves — nor will it make new private investments in funds that invest heavily in fossil fuel extraction or processing.

“It’s important to note that the majority of these investments are legacy commitments in liquidation or wind-down mode,” the U’s statement said. “Some of that capital will be redeployed to opportunities outside of the energy sectors, while some will be replaced by ongoing commitments to renewable or clean energy resources, including more energy-efficient technologies with broad market applications.”

Student leaders at the U have long sought this change. In 2013, the Minnesota Student Association passed a resolution asking the university to divest.

More recently, the Association of Big Ten Students, which represents more than 500,000 undergraduate students, called on all Big Ten schools to divest from fossil fuels.

The Minnesota Student Association cited these previous efforts in a new divestment letter it sent to university leaders and the Board of Regents this week, in which the student government urged them to “stand on the right side of history.”

Abdulaziz Mohamed, the U’s undergraduate student body president, said he was not fully satisfied by the university’s choice to take five to seven years to divest from the industry.

“The University’s current plan to wait on divesting from the fossil fuel industry is another indicator of the different timelines for change between student leaders and the administration,” Mohamed said.

Miller added she thinks the move is “never really going to be soon enough,” but she acknowledged the university likely cannot pull out of its investments overnight “and not have repercussions from it.”

Regents James Farnsworth and Mike Kenyanya said they think the university has reached a reasonable decision. Kenyanya noted it’s a more immediate timeline than the 10-year exit plan Rutgers University enacted.

“I think we should do it as soon as possible, and if as soon as possible is five to seven years, then that’s that,” he said.

Kenyanya also praised student leaders for their persistent advocacy.

“The other week we had fires on one side of the country, a drought in the middle,” Kenyanya said. “This is the kind of activism and pressure we need.”

Ryan Faircloth • 612-673-4234

Twitter: @ryanfaircloth





Source link

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on pinterest
Pinterest
Oliver Bolt

Oliver Bolt

On Key

Related Posts