China’s State Development and Investment Corp, a sovereign wealth fund with more than US$200 billion in assets under management, has announced that it will cease investments in coal power in favour of renewable energy. The announcement, made to Chinese reporters and confirmed by the Australian Financial Review, tracks a national policy of attempting to shift the country onto a cleaner energy track to reduce both emissions and air pollution in its major cities.
The SDIC’s move brings it in line with other major investors—including banks, investment funds and state bodies, from the Norwegian sovereign wealth fund to the city of New York—who have reduced their exposure or entirely divested from coal and other hydrocarbons. Last September the investment firm Arabella Advisors estimated that investors representing more than US$6 trillion in assets under management had now divested from fossil fuels.
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