12 November 2015
Press release 11/11/15. Sign the petition here.
As the Canadian tar sands have come over increasing pressure over the last week, Somerset County Council Pension Fund has faced criticism for investing in Suncor - one of the biggest stakeholders in the controversial oil exploration project. Last week saw Obama’s rejection of the Keystone XL pipeline and four days of sit-ins outside the newly sworn in Canadian Prime Minister’s Residence calling for a freeze on tar sands expansion. Meanwhile Somerset County Council has £845,145, the 15th highest of any UK Council invested in Suncor, with investments totalling over £53 million from UK Councils.
Cllr Shane Collins, Leader of the Green Party group on Mendip Council, commented;
“The tar sands are a red line for the climate - we know that this polluting energy source simply cannot be burned if we are to keep in line with global climate change targets. We need to keep 80% of known fossil fuels in the ground, starting with polluting projects like the tar sands. Somerset County Council’s £845,145invested in Suncor are investments in destruction; it’s time they divested from this risky business, and from dirty energy altogether. As well as Suncor Somerset County council Pension funds invests £121,505 or 8% of the entire fund in fossil fuels. Sign the petition for Somerset County Council fossil fuel divestment at https://campaigns.gofossilfree.org/petitions/divest-somerset-county-council-pension-fund-from-fossil-fuels.
With the COP talks due to begin in Paris now is the time for Somerset Pension fund to do our bit to abate climate change."
The tar sands are a particularly polluting energy source, producing four times more greenhouse gas emissions than conventional oil extraction. Their exploitation has also led to mass deforestation and significant pollution of the water supply. Suncor has been fined on multiple occasions for dumping untreated waste water, leakage, not monitoring pollution and emissions exceeding regulations.
Tar sands projects have also been widely criticised for the violation of the rights of Canadian indigenous peoples; in 2008, the Beaver Lake Cree Nation filed a lawsuit against the Canadian and Albertan governments over the development of the tar sands. This week has also seen mass acts of civil disobedience in Canada protesting tar sands expansion.
Investment in the tar sands is also financially risky. A report released by Carbon Tracker in 2014 highlighted that investors face significant risk in the next decade as high oil prices of more than $95 a barrel are needed for the tar sands to be profitable. Suncor itself has also faced recent financial difficulties, posting losses of nearly $300 million dollars this quarter.
With the major pipelines required to make tar sands equitable under threat following Obama's rejection of the Keystone XL, tar sands assets may also soon be literally stranded as expansion is impossible without new pipeline infrastructure. This month, Shell announced it was shelving its Carmon Creek tar sands project at a cost of billions of dollars, citing “uncertainties.”
Ellen Gibson from 350.org commented,
“Exploitation of the Canadian tar sands is not compatible with a liveable planet, and investment in such an industry represents a serious financial risk to workers’ money. Our local authorities must stand up for pension fund members by divesting from Suncor’s unsustainable business model and the fossil fuel industry altogether.”
NOTES:
Research into Suncor investments comes from data released by 350.org, Platform, Friends of the Earth and others showing that local councils invest £14 billion in fossil fuel companies. This data can be found here: www.gofossilfree.org/uk/pensions
For a breakdown of each council’s investments in Suncor, see this spreadsheet
More information on the movement to end tar sands exploration can be found on the UK Tar Sands Network website: http://www.no-tar-sands.org/
The divestment movement is an international grassroots campaign calling on public institutions to break their ties with the fossil fuel industry. For more information, go to www.gofossilfree.org/uk
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