The University of Toronto currently owns stock in 200 fossil fuel companies. On October 29, UofT students and fellow environmentalists took action on the streets of UofT’s St. George campus to urge the administration to divest from these fossil fuel companies.
The pressing demand for the university to divest from fossil fuels is clearly articulated by the group known as Toronto350, who focus on preserving our environment and fossil fuels. Here are Toronto350’s reasons for the university to consider divesting from fossil fuels:
- Fossil fuel stocks are one of the least successful stocks to invest in.
- Studies have shown that screening out fossil fuel stock is financially safe. Reports are showing, in fact, that divestment from fossil fuel stocks should have started ten years ago. Investing in fossil fuel-free portfolios would be more rewarding, as these portfolios perform better than the market average.
- Coal as a resource is in decline. All of the cheap coal has been mined, and many countries are starting to enforce clean air policies by limiting emissions on power plants. These factors cause the investment prospects for coal to decline.
- The future of natural gas is unpredictable. Fracking, the action of injecting liquid at high pressure into rocks to extract oil and gas, has put nearby water supplies at risk of contamination.
- Renewable energy will soon be cheaper than fossil fuels. By 2020, it will be cheaper and faster to build plants producing renewable energy than those using coal, oil, or gas.
- When the carbon bubble bursts, fossil fuel stocks will plummet.
Over 200 members of UofT’s faculty have stated that they promote the divestment of the $2.1 billion that UofT has invested in fossil fuels.
The use of fossil fuels contributes to climate change. Organizations like Toronto350 have stated that if the temperature rises by two degrees Celsius, the effects of climate change will become critical. To stay below that limit, we can emit no more than 565 billion more tonnes of carbon dioxide, period. Consequently, large fossil fuel industries have the ability to emit more than enough to push the world into a severely dangerous environmental status.
UofT students held another protest on November 12, which ran down St. George Street and finished outside of the President’s office on Simcoe Street. Students are hoping that by getting the administration’s attention, they will be able to make the administration understand the benefits of divesting from fossil fuels. If the university is responsive to the demands made by students, hopefully other large institutions will follow in the divestment chain.
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