Eurobodalla Shire Council will give preference to investing with financial institutions that do not support the fossil fuel industry.
It comes after a notice of motion put forward by Councillor Patrick McGinlay at the ordinary meeting of Council last week.
The decision aims to achieve a ratio of two-thirds of Council investments lodged with financial institutions that have a stated intent, and/or track record of, non-investment in the fossil fuel industry by the end of the 2016-17 financial year.
The interest rate must be equivalent to others on offer to Council at the time of investment to ensure no loss of investment income.
Mayor Liz Innes congratulated Cr McGinlay on putting the motion forward.
“Our community has been clear with us that environmental protection is a priority,” she said.
“Eurobodalla will join nine other local governments in NSW – 18 Australia-wide – that have similar divestment strategies in place.”
Cr McGinlay said the motion intended to support environmental protection by taking action to combat climate change.
“Carbon emissions through the use of fossil fuels are, according to overwhelming scientific evidence, one of the key contributors to global warming and climate change,” he said.
“Once the strategy is proven to be working smoothly, Council could consider further incremental increases in divestment.”
A briefing will be provided to councillors at the end of the 2016-17 financial year to assess the results of the strategy. Media Release
Above: Councillor Patrick McGinlay