Oregon becomes third jurisdiction in North America to enact fossil fuel divestment legislation

OREGON ** – In a groundbreaking victory for pensioners, workers, and climate advocates, the Governor of Oregon signed the COAL Act (HB 4083) into law last night, which will divest the $98 billion Oregon Public Employee Retirement Fund (OPERF) from up to $1 billion in thermal coal producers. Oregon becomes the third jurisdiction in North America (joining California and Maine), and the fourth in the world (the country of Ireland), to pass fossil fuel divestment legislation, affirming the downward trajectory of the fossil fuel sector and associated financial risks. 

On this win, Susan Palmiter with Divest Oregon issued the following statement:

“Climate change is one of the greatest challenges of our time, which also comes with serious financial risks to Oregon pension beneficiaries, requiring urgent action. The COAL Act begins to address these issues. Championed by Oregon Representative Khanh Pham and Senator Golden, the act provides urgency and needed momentum to Oregon Treasurer Read’s 2024 net-zero plan. In that plan, he states that the impacts of a changing climate pose risks to supply chains, threaten property and transportation infrastructure, force insurance companies to pull out of entire geographic areas and disrupt commodity markets – those risks translate into financial risks. We couldn’t agree more. Safeguarding pension plans from climate risk is good for Oregon pension beneficiaries and good for the planet. The COAL Act is a big step on that path.”

This comes following the hottest year on-record, amidst ongoing fires, floods, and volatile temperatures, the human impact of which reports reveal is acutely undercounted. 

Amy Gray, Stand.earth Climate Finance Associate Director and coordinator of the Climate Safe Pensions Network, added: 

“Thanks to intergenerational community-building and people power, Oregon pensioners, workers, and future generations have a shot at a fossil free future. This hard-fought campaign started just two and a half years ago, and is a testament to real leadership of organizers and legislators that this bill is now law. As we enter shareholder season, this sends a shockwave through the coal-financing sector. As investors on the longest-term horizon, OPERF and all pension funds, have a duty and responsibility to read the writing on the wall: fossil fuels – especially coal – are a losing bet.”

All eyes are also on California, where a full fossil fuel divestment bill is moving forward in the State Assembly after successfully passing the state Senate in 2023. SB 252 directs the two largest pension funds in the country – CalPERS and CalSTRS, with a combined value of over $800 billion – to divest from the largest 200 fossil fuel companies, shedding up to $14 billion. 

Oregon now joins more than 1610 institutions representing over $40.76 trillion in assets have committed to some level of fossil fuel divestment, and recent reports reveal the financial case for divestment is stronger than ever.

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Divest Oregon is a people-powered coalition of over 100+ statewide unions, youth, faith-based, racial and climate justice groups with over 1000 individual members. 

**Oregon is the ancestral home and unceded lands of Indigenous Peoples including the Cayuse, Umatilla and Walla Walla, Nüümü (Northern Paiute), Confederated Tribes of Warm Springs, Burns Paiute Tribe, Confederated Tribes of Coos, Lower Umpqua and Siuslaw, Coquille Indian Tribe, Cow Creek Band of Umpqua Tribe of Indians, Confederated Tribes of The Grand Ronde, Klamath Tribes, and Confederated Tribes of Siletz Indians. We invite you to explore more on Native-Land.ca and the Oregon Secretary of State website.