On the one-year anniversary of the Paris climate agreement, the value of assets represented by institutions and individuals committing to some sort of divestment from fossil fuel companies has reached $5 trillion. To date, 688 institutions and 58,399 individuals across 76 countries have committed to divest from fossil fuel companies, doubling the value of assets represented in the last 15 months. Pension funds and insurance companies now represent the largest sectors committing to divestment, reflecting increased financial and fiduciary risks of holding fossil fuels in a world committed to stay below 2° Celsius warming.
New clean energy investment
New clean energy investment vehicles, fossil-free funds, large investment deals, capital commitments, and coalitions are driving more capital to the clean energy sector with the aim of accelerating the transition to a sustainable, low-carbon economy, and to support communities most impacted by climate change and energy poverty. Clean energy investment has continued its steady growth, reaching $329 billion in 2015, and several divesting institutions have made explicit commitments to increase their investments in clean energy. Institutions and individuals that have pledged to both divest and invest in clean energy and climate solutions collectively hold $1.3 trillion in assets. Several of these institutions are using their assets to help fill gaps in private sector finance, focusing on poor and vulnerable communities that risk being left behind in the energy transition. The clean energy sector also saw several ambitious new commitments to invest in clean energy innovation and access in the wake of the UN Paris negotiations in late 2015.
