11/16/2013 - Panel discussion on fossil fuel divestment

[Thomas Olbert]

11/16/2013

Panel Discussion on State Bill: S_1225: Massachusetts Divesting from Fossil Fuels

http://jptransition.org/events/823/divestment-from-fossil-fuels-a-panel-discussion/


This morning at the Boston Public Library, a distinguished panel of experts gave a lively, moving and very energized talk and Q&A session regarding State Bill S_1225, which calls for all public funds, including the state pension fund, to divest from all companies in the fossil fuel industry. Text of bill at: https://malegislature.gov/Bills/BillHtml/126928?generalCourtId=11

S_1225 is sponsored by Senator Benjamin B. Downing of Pittsfield https://malegislature.gov/Bills/BillHtml/126928?generalCourtId=11

The panel discussion was initiated by 350MA and co-sponsored by Jamaica Plain New Econonmy Transition, and HEET. MIT, UMass and Harvard also participated. The MA Energy Consumer Alliance helped with the electricity for the event.

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The event was fairly well-attended by a diverse crowd, drew many questions from the attendees and was, in my opinion, an exceptionally moving and passionate appeal for divestment from the fossil fuel industry as a direct route of approach to the climate change crisis.

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Intro:

Malcolm Bliss of 350MA started off the event with an informative and potent slide presentation on divestment and the effects of global warming in human terms. Due to the tight two-hour schedule for the event, Bliss’s presentation did seem a bit rushed, though he effectively covered all the salient points in a way that newcomers to the issue could follow

He summarized divestment as removing $1.3 billion from the total assets of the MA State Pension Fund (or, 2.6%). He explained this would mean

1) Freezing investment
2) Selling existing holdings

He stated the long-term goal of divestment as leaving 80% of fossil fuel reserves in the ground, and to divert investments into clean energy research and development. He pointed out that numerous economic studies (though he cited none specifically) had indicated that developing clean, renewable energy sources would, in the long run, be more profitable and better for the economy as a whole than continued dependence on fossil fuels.

His talk then shifted from the raw numbers of the issue into the moral realm of economic justice, citing the disproportionate damage done to the poor worldwide by climate change. He stressed the increasing frequency of storms, damage to global food supplies, and the unnatural spread of disease, making an impassioned plea for changing “business as usual.” He stressed the need for pressuring the business community toward the goal of making Massachusetts and ultimately the U.S. fossil fuel free.


What I found most striking about Malcolm Bliss’s presentation was that it gave no quarter in starkly pointing out the human suffering wrought by climate change, presenting photographs of houses recently destroyed by rising sea levels in the coastal United States. Toward the end of his presentation, Bliss showed a photograph of refugees in the Philippines, and asked for a brief period of silence in praying for their salvation.

It’s been my experience that many in the movement to reduce carbon emissions have spoken out against such graphic imagery, arguing that such “alarmist” or “aggressive” warnings of the dangers of global warming might alienate the public. I think the presentation served as a reminder that the direct approach is necessary and effective, if not taken to extremes.

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Speakers:

The first speaker, and event moderator was Hyeth Imam of the Climate Justice Alliance.

She was both a charming and commanding speaker, stressing both the national and international significance of divestment in fossil fuels. She pointed out that Massachusetts would be the first state in the Union to divest from fossil fuels, and potentially the leader of a national movement.

She continued Malcolm Bliss’s theme of economic justice, stressing the fact that the poorest nations of the world contribute the least to carbon emissions, yet suffer the most from the effects of climate change. She added a personal note, pointing out that her home country, Bangladesh was particularly vulnerable to weather extremes caused by global climate change, and issued a dire warning of possible future disasters.

(Again, I was struck by the heartfelt directness of the appeal, as well as by the use of a personal connection.)

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Next up was Mara Scallin, a student activist from Northeastern University. She and her fellow on-campus activists, through an on-going effort of student education, events, and petitions are attempting to build a student movement of diverse student organizations (including economic groups, etc.) large enough to go to Northeastern administration and demand a $17 million divestment from the fossil fuel industry.

She represents campus-based movements across the country pushing for University divestment from fossil fuels. She cited Green Mountain College in Vermont and San Francisco State University as successes in this national movement. She also pointed out that the fight to divest is continuing at Harvard, though student activists there were recently rebuffed by administration due to “potential political associations” which administration wanted to avoid.

Ms. Scallin stressed the importance of college divestment, pointing out that when colleges divest, it not only helps shift money away from fossil fuels, but also helps shift public opinion in recognizing the urgency of the climate change crisis.

She compared the on-campus fight for divestment to past student movements, such as the Civil Rights struggles of the 1960’s and the movement for South Africa divestment in the 1980’s. She characterized fossil fuel divestment as the “Largest moral issue of our time.”

She was a strong speaker, and an encouraging sign in a time when we would all like to see more on-campus activism.

See:

http://www.greenmtn.edu/news_events/new_releases/green-mountain-college-board-approves-divestment-of-fossil-fuel-holdings.aspx

http://gofossilfree.org/commitments/

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Next up was Chuck Collins, a distinguished senior scholar and author of such books as “Economic Justice”, “Wealth for the Common Good” and “99 to 1”.

Himself a former student activist for South African divestment, he continued Mara Scallin’s comparison of the two movements, saying that the arguments against divestment from the fossil fuel industry being made today essentially parallel arguments made against divestment from South Africa in the 80’s:

- Divestment is a pointless gesture
- It politicizes the issue
- It’s too much of a financial hardship
- It takes away economic leverage which might do some real good

He also reminisced about the Ed King veto of South African divestment, and how it only served to reinvigorate the movement. Mr. Collins mentioned Nelson Mandela’s personal message of thanks to the college divestment movement, and stated the opinion that fossil fuel divestment was actually an easier cause to win, since it was a less costly divestment than the one from South Africa.

He stressed the importance of a concerted, organized movement in the success of any divestment cause.

He listed as three key points in the emissions reduction movement in general:

1) Imposing a carbon tax
2) Eliminating fossil fuel subsidies
3) Investment in energy-efficient infrastructure

He went on to say that the political clout of the fossil fuel industry was blocking political progress toward a carbon tax, and pointed out the importance of divestment movements in helping to “stigmatize” and “vilify” the fossil fuel industry. Here, he drew a comparison to the anti-tobacco movement and its successes in making the tobacco industry a pariah in the eyes of the public.

He listed as key weapons in the divestment movement:

1) Public education forums
2) Religious congregations

He characterized a successful divestment movement as incorporating elements of religion, labor, and crossing the lines between neighborhoods rich and poor.

His talk concluded with a mention of the revised map of the Boston Flood Area, which appeared on the front page of today’s Boston Globe.

(Hopefully, a sign that the news media are finally giving the climate change threat the attention it deserves??)

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Next up was Erik Packer, an Investment advisor with Progressive Asset Management Group; (www.PamGroupBoston.com) he gave the attendees a crash course in investment strategizing and covered the economic side of the divestment issue.

He challenged Chuck Collins’ optimism, saying that divestment from fossil fuels would in fact be a much harder cause, since it would require the adoption of a whole new “business paradigm”, a whole new business model. He said that it was far too late for “share holder activism”, advocating an external approach to the obstacle of the powerful Fossil Fuel lobby. He advocated a carbon tax to lower the value of shares in oil and gas companies so share holders would sell.

He did, however, hold out some meager hope for green energy R&D which is increasingly being funded by fossil fuel companies diversifying their endeavors. Later, during Q&A, however, he stated that, while fossil fuel companies currently have no choice but to diversify slightly in investing in renewable energy, they still pour millions of dollars into anti-renewable lobbying each year.
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Next up was the Reverend Carol Montagno, who provided the faith-based, moral outlook on the issue. The reverend characterized climate change as a “human issue”, an “ecological and planetary issue.” She re-visited the issue of economic justice and the human suffering caused by climate change in stressing Christian moral imperatives of caring for the poor and mentioned what she called a “covenent with the earth.”

See: Genesis Covenant - http://genesis.eds.edu/

She stated that the Diocese of Massachusetts has committed to reducing its carbon footprint in raising $2 million toward public education in global warming, and in retro-fitting church buildings for optimized energy efficiency. She concluded with the biblical principal of “putting one’s money where one’s heart is.”

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Also in attendance were Representative Jay Livingstone, and William Brownsberger. (Brownsberger supports State Bill S_1225.)

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Q&A:

During the Question and Answer session, it was pointed out that the Speaker of the House had to okay Bill S_1225 in order to get it out of committee.

Erik Packer pointed out that, of the 200 top fossil fuel companies, 139 of them are publicly traded. Packer stated that all investors should strive for a portfolio with 0% fossil fuel investments. He also said that, in divesting from fossil fuel companies, each investor should send a letter to the company explaining why, in order to put pressure on the industry.

The role of municipal governments was also discussed as a way to influence state legislatures. State Rep Marjorie Decker was referred to as an “important ally.”


Erik Packer pointed out that co-mingling of University investments makes divestment virtually impossible, since fossil fuel investments cannot be separated from the others. He suggested money be withdrawn (divested) from any co-mingled investments.

Mara Scallin was asked for advice for students trying to mobilize a divestment movement on campus. She said to find “like-minded” students at meetings and to seek out sympathetic faculty advisers.

Malcolm Bliss pointed out that in Massachusetts, consumers have the option of choosing their own electricity providers, including alternative, green energy producers.

See: http://www.greenamerica.org/about/?gclid=CM6GnoyH67oCFUYaOgodKigAxA

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Next Steps:

The event organizers advocated letters to newspaper editors, and to State Treasurer (and, gubernatorial candidate) Steve Grossman.

And, to sign the petition “Pass Mass” – to amend the state constitution to state that “Corporations are not people”:

http://passmassamendment.wikispaces.com/PRINT+THE+PETITION+FORM