California could soon divest its public pensions from fossil fuel companies, as the state legislature looks to force the nation’s largest non-federal retirement funds to sell off nearly $15 billion in assets.
The Democratic effort is part of a growing international movement by government, religious, nonprofit and academic institutions to divest from fossil fuel companies. For proponents, this is not just about sending a strong message as global temperatures rise, but also about shoring up financial futures as the world transitions to green energy and faces growing uncertain events such as Russia’s war on Ukraine.
Opposing the California measure, however, are Republican lawmakers, the state’s powerful petroleum lobby and the public pension funds that the bill targets, who all argue the proposed change threatens millions of residents’ hard-earned retirement money.
