Letter to Councillors of Leichhardt Municipal Council
Email address: allcouncillors@lmc.nsw.gov.au
Dear Councillors Byrne, Kelly, Breen, Channells, Costatino, Emsley, Hannaford, Kogoy, Jobling,
Manikas, McKenzie and Porteous
I understand that Council is to consider, at its meeting next week, a motion on Fossil Fuel
Divestment.
This is to urge all Councillors to consider this motion seriously and to give it your support for four
reasons:
1.
There is no doubt that the Australian fossil fuel industry (coal and gas mining and
export as well as local coal and gas-fired power stations) is contributing substantially to
the changes we are experiencing in the climate. The major Australian banks have loaned
billions of dollars to these industries in the past few years, money which goes directly towards
creating unacceptable carbon emissions. International bodies have calculated that the world
simply cannot afford to burn more than 20% of existing known coal reserves without irreversible
effects on the climate. Leichhardt Council has a long record of leading the way on environmental
sustainability: it has no business investing in this industry, directly or indirectly.
2.
Whether or not you accept the predictions of climate change scientists and
economists, and regardless of the Australian government's policies, it is clear that globally, there
is a growing trend away from fossil fuels and towards renewable energy. The fossil fuel industry is
reacting to this by accelerating its exploration and extraction activities - in an attempt to beat the
rush. But there are growing fears that this is leading to a bubble of investment which will lose
value very rapidly before mining projects are completed, as the international market for goal and
gas dwindles and prices fall. Even now, some projects are being abandoned: but many more are
continuing,supported by the big four Australian banks. Even if Leichhardt Council's money is
"safely" placed with the banks in fixed rate deposits, the viability of the banks and their ability to
do business will be dramatically affected when this carbon bubble bursts.
3.
There are alternative financial institutions which have consciously steered their
own investments entirely away from fossil fuel and the inherent risks therein, towards clean
energy and oher low-carbon technologies. Leichhardt Council should consider these as preferred
investments. In recent years it has been shown that it is not necessary to choose between clean
or ethical investments and high yields: both are possible. In fact a number of so-called green
investment funds are regularly showing better rates of return than classical portfolios.
4.
Concerns about the effect on employment and economic growth if investment in
traditional fossil fuels is cut are ill-founded. Alternative clean renewable energy projects
provide huge opportunities for jobs in manufacturing, installing and operating the new technology:
6.5 million people are already employed worldwide in the renewable energy industry.
On the basis of these points, I would implore you to give your support to the motion before
Council on 24th May. Please support the recommendation that Council staff review its current
investments, and report on how Council can alter its investment policy in a way to better reflect its
well-established environmental commitments.
Thank you for your consideration
….