All governments and financial actors must begin directing investments away from fossil fuels and towards sustainable industries
Divesting from fossil fuels and increasing sustainable investments, known as ‘Divest-Invest’ action, is an effective way for cities, pension funds and other institutional investors to protect their assets from climate-related risks and take advantage of the financial opportunities presented by the world’s transition towards a green economy. Shifting investment into climate solutions also helps to close the financing gap many cities face as they develop projects to achieve the goals of the Paris Agreement, creating new jobs and opportunities in the green economy in the process.
By ensuring that their investments align with their climate strategy, cities demonstrate strong climate leadership and ambition to achieve a swift transition to a sustainable economy. Buoyed by public support for divestment, cities can be powerful advocates for accelerated action on the global stage, in business and in the finance community. Divestment and sustainable investment also sends a clear message rejecting the destructive business models of fossil fuel companies.
Divesting from Fossil Fuels, Investing in a Sustainable Future Declaration
Launched at Climate Week NYC 2020, 12 cities signed C40’s declaration, “Divesting from Fossil Fuels, Investing in a Sustainable Future”, committing to lead the way by divesting from fossil fuels and championing investments in the green economy wherever possible. On 26 October 2021, in conjunction with the release of the “Invest-Divest 2021: A Decade of Progress Towards a Just Climate Future” report, six new cities signed the declaration.
Signatories pledge to use their financial might to promote a just and clean energy transition through concrete actions at the city, national and international levels. Each city has developed an action plan, upon which they will regularly report. Learn more about the declaration
About the C40 Divest/Invest Forum
The C40 Divest/Invest Forum is a first-of-its-kind initiative to help urban leaders make the leap to effective and efficient divestment and accelerate green investment. Launched in close partnership with London and New York City, the Forum is designed to support cities and their pension funds in developing and delivering Divest/Invest strategies. Besides the lead cities London and New York City, the cities of Auckland, Boston, Cape Town, Copenhagen, Durban, Los Angeles, Melbourne, Oslo, Paris, Pittsburgh, San Francisco, Stockholm and Vancouver are involved to date. Joining is open to any city, non-regarding of whether they have yet made a commitment to divest.
For more information on the city-led Divest/Invest movement, a collection of resources is available on the C40 Knowledge Hub.
The Forum is supported by Wallace Global Fund, the Climate Change Collaboration – an initiative of Ashden Trust, Mark Leonard Trust, and JJ Charitable Trust – and Rockefeller Brothers Fund.