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Liz Truss rejects call for MPs' pension fund to divest from fossil fuels MPs pension fund should not be divested from fossil fuels, says Liz Truss
(about 5 hours later)
The Conservative environment secretary, Liz Truss, has said she would not request the MPs’ pension fund to divest from fossil fuels.The Conservative environment secretary, Liz Truss, has said she would not request the MPs’ pension fund to divest from fossil fuels.
She told the Guardian: “I believe the right way [to affect investment] is through carbon reduction targets.”She told the Guardian: “I believe the right way [to affect investment] is through carbon reduction targets.”
Caroline Flint, Labour’s shadow energy secretary, said she would “look into it”. She declined to support divestment and said the debate over divestment should be about setting the right conditions for long-term investment in environmental sustainability.Caroline Flint, Labour’s shadow energy secretary, said she would “look into it”. She declined to support divestment and said the debate over divestment should be about setting the right conditions for long-term investment in environmental sustainability.
The MPs were speaking to the Guardian on the fringes of a public debate on green policies in the run-up to the general election, held by the Green Alliance and a consortium of environmental NGOs.The MPs were speaking to the Guardian on the fringes of a public debate on green policies in the run-up to the general election, held by the Green Alliance and a consortium of environmental NGOs.
The MPs’ pension fund is a key target of a Guardian campaign calling for it to move away from its fossil fuel investments, reasoning that much of the world’s fossil fuel reserve will need to be kept in the ground if greenhouse gas emissions targets are to be met and the ravages predicted from climate change are to be avoided. More than 200 institutions worldwide have now either divested from fossil fuels or have committed to do so, including faith organisations, local authorities and universities. The Guardian is currently calling on the Wellcome Trust and the Bill and Melinda Gates Foundation to move away from fossil fuel investments, reasoning that much of the world’s fossil fuel reserve will need to be kept in the ground if greenhouse gas emissions targets are to be met and the ravages predicted from climate change are to be avoided.
Ed Davey, the LibDem energy secretary, told the debate that he supported divestment away from coal, but not gas as it would continue to be needed, and which currently makes up 80% of the UK’s energy use. He said this move was already happening. Ed Davey, the Lib Dem energy secretary, told the debate that he supported divestment away from coal, but not gas as it would continue to be needed, and which currently makes up 80% of the UK’s energy use. He said this move was already happening.
He said: “The way pension funds are going they are interested in placing their money in what they see as sustainable forms of investment. To give incentives we need decarbonisation targets. I would make a distinction between coal and oil and gas.” He said: “The way pension funds are going, they are interested in placing their money in what they see as sustainable forms of investment. To give incentives we need decarbonisation targets. I would make a distinction between coal and oil and gas.”
He also called for more transparency for investors. “If you look at the work of the Bank of England, the Bank of Brazil, the Bank of South Africa, you need to ensure investors have real disclosure about the assets of the companies they are investing in, [to see whether they are] building assets or long-term liabilities. Investor disclosure is one thing we can push through.”He also called for more transparency for investors. “If you look at the work of the Bank of England, the Bank of Brazil, the Bank of South Africa, you need to ensure investors have real disclosure about the assets of the companies they are investing in, [to see whether they are] building assets or long-term liabilities. Investor disclosure is one thing we can push through.”
Caroline Lucas, the Green party’s only MP, said she was enthusiastically calling for divestment through the MPs’ pension fund and others.Caroline Lucas, the Green party’s only MP, said she was enthusiastically calling for divestment through the MPs’ pension fund and others.
The MPs were also asked about the future of shale gas in the UK, with Lucas firmly opposed while the others said they supported shale gas development with good regulation. Flint said: “We’re not setting our faces against shale gas – we will need gas for years to come.” She said Labour had put forward a variety of measures for environmental protection and regulation on shale drilling in the infrastructure bill. Davey said producing shale gas in the UK was greener than importing gas from Qatar. The MPs were also asked about the future of shale gas in the UK, with Lucas firmly opposed while the others said they supported shale gas development with good regulation. Flint said: “We not setting our faces against shale gas – we will need gas for years to come.” She said Labour had put forward a variety of measures for environmental protection and regulation on shale drilling in the infrastructure bill. Davey said producing shale gas in the UK was greener than importing gas from Qatar.
Truss said: “We have done a lot of work on the risk. Provided we have the right protections in place, it can have minimal impact on the environment. There is already onshore oil and gas in this country [without the use of fracking technology and] which has the support of local residents. Just like other forms of energy, shale has to go through local planning protections put in place by DECC [Department of Energy and Climate Change]. It really is very heavily protected – that is right the approach.” Truss said: “We have done a lot of work on the risk. Provided we have the right protections in place, it can have minimal impact on the environment. There is already onshore oil and gas in this country [without the use of fracking technology and] which has the support of local residents. Just like other forms of energy, shale has to go through local planning protections put in place by the Department of Energy and Climate Change (Decc). It really is very heavily protected – that is the right approach.”