New York City will Divest from Fossil Fuels -- Filed Lawsuit against Major Oil Companies

Empire State Building on Jan.10, 2018
[click image to enlarge]

Climate Action: Mayor, Comptroller, Trustees Announce First-In-The-Nation Goal to Divest From Fossil Fuels

January 10, 2018  |  NYC.gov

City also filing suit against five largest fossil fuel companies, seeking damages to help protect city from climate change

NEW YORK—Mayor Bill de Blasio, Comptroller Scott M. Stringer and other trustees of the City’s $189 Billion pension funds today announced a goal to divest City funds from fossil fuel reserve owners within five years, which would make New York City the first major US pension plan to do so. In a first-in-the-nation step towards the goal of divestment, the Mayor and Comptroller will submit a joint resolution to pension fund trustees to begin analyzing ways to divest from fossil fuel owners in a responsible way that is fully consistent with fiduciary obligations. In total, the City’s five pension funds hold roughly $5 billion in the securities of over 190 fossil fuel companies. The City’s move is among the most significant divestment efforts in the world to date.

"New York City is standing up for future generations by becoming the first major US city to divest our pension funds from fossil fuels,” said Mayor de Blasio. “At the same time, we’re bringing the fight against climate change straight to the fossil fuel companies that knew about its effects and intentionally misled the public to protect their profits. As climate change continues to worsen, it’s up to the fossil fuel companies whose greed put us in this position to shoulder the cost of making New York safer and more resilient.”

“This is a first-in-the-nation step to protect our future and our planet – for this generation and the next. Safeguarding the retirement of our city’s police officers, teachers, firefighters and city workers is our top priority, and we believe that their financial future is linked to the sustainability of the planet. Our announcement sends a message to the world that a brighter economy rests on being green,” Comptroller Stringer said. “It’s complex, it will take time, and there are going to be many steps. But we’re breaking new ground, and we are committed to forging a path forward while remaining laser-focused on our role as fiduciaries to the Systems and beneficiaries we serve.”

The Mayor also announced that the City has filed a lawsuit against the five largest investor-owned fossil fuel companies as measured by their contributions to global warming. The City will be seeking damages from BP, Chevron, ConocoPhillips, Exxon Mobil, and Royal Dutch Shell for the billions of dollars the City will spend to protect New Yorkers from the effects of climate change. This includes damages to pay for harm that we’ve already seen and damages that are necessary to address harm we expect to happen over the course of this century.

New York City’s lawsuit seeks to recover the billions needed to fund climate change resiliency measures that the City needs to implement to protect the City, its property, and its residents from the ongoing and increasingly severe impacts of climate change. This includes physical infrastructure, like coastal protections, upgraded water and sewer infrastructure, and heat mitigation, but also public health campaigns, for example to help protect residents from the effects of extreme heat. To recover from past harm and prepare for future events, New York City is already executing an over $20 billion resiliency program to protect New Yorkers and build resilience against rising seas, more powerful storms, and hotter temperatures.

Recently uncovered documents make it clear that the fossil fuel industry was well aware of the effects that burning fossil fuels would have on the planet’s atmosphere and the expected impacts of climate change as far back as at least the 1980s. Nonetheless, they deliberately engaged in a campaign of deception and denial about global warming and its impacts, even while profiting from the sale of fossil fuels and protecting their own assets from the effects of rising seas and a changing climate. More than half of the greenhouse gas pollution from the fossil fuel industry has occurred since 1988, according to a recent analysis. Sea levels have risen about one foot since 1900 with much of that rise due to climate change, the most powerful storms are becoming more frequent, and flooding is becoming more frequent and intense.

Fossil Fuel Subsidies: Let's End 'Polluter Welfare'

Politico 
By U.S. SEN. BERNIE SANDERS and U.S. REP. KEITH ELLISON

At a time when we have a more than $15 trillion national debt, U.S. taxpayers are set to give away roughly $110 billion to the oil, gas and coal industries over the next decade. We cannot afford it.

The five largest oil companies made more than $1 trillion in profits in the last decade, and in some cases paid no federal income taxes for part of that time. They certainly don’t need government handouts.

We need to end this corporate welfare in the form of massive subsidies and tax breaks to hugely profitable fossil fuel corporations. It is time for Congress to support the taxpayers’ interests instead of powerful special interests like the oil and coal industries. That’s why we introduced the End Polluter Welfare Act — which eliminates every subsidy to the oil, gas and coal industries.

The bill already has grass-roots support from across the political spectrum, including 350.org, Friends of the Earth, Taxpayers for Common Sense and many others.

Some of the same Republicans in Congress who advocate savage cuts to Medicare, Medicaid and Social Security consistently vote to preserve billions in tax breaks for Exxon Mobil, one of the most profitable corporations in U.S. history. While those members of Congress fight to continue fossil fuel subsidies worth tens of billions, they are working overtime to deny a one-year extension of key sustainable energy incentives for the emerging wind and solar industries.

Rather than pass strong legislation to help reverse global warming, Congress continues giveaways to the fossil fuel industry — even as its carbon pollution devastates our planet.

While there have been attempts to remove some of these fossil-fuel subsidies in the past, our bill is the most comprehensive. It would end all tax breaks, loopholes and federal research support for fossil fuels. It would make sure the industry pays its fair share by ensuring royalty collection for all drilling or mining on public land. We also end the loopholes that allow tar sands pipeline operators avoid paying clean-up tax.

It is important that the American people understand just how egregious these fossil fuel handouts are: