THE SKY will not fall in if councils start divesting en masse from groups financing fossil fuel projects, a Bendigo councillor says ahead of a reform push affecting local governments nationwide.
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Cr Jen Alden has this week won the City of Greater Bendigo council's endorsement for the tilt to stop doing business with banks and other "authorised deposit taking institutions" involved in fossil fuel projects.
"It's not unusual to meet some resistance to change, yet the City of Greater Bendigo has been actively divesting from fossil fuel investments for the past four years," she told the council during a meeting this week.
Cr Alden's motion authorises the council to lobby for change through peak industry groups like the state-based Municipal Association of Victoria (MAV) and national Australian Local Government Association (ALGA).
"This would enable councils to show leadership by further reducing indirect carbon emissions by 100 per cent divestment of investments," she said.
"It would apply to any company for whom the extraction, production, refining, or distribution of fossil fuels forms a core part of their business strategy."
Not everyone around the council table is convinced it is the right way to go.
Both Cr Vaughan Williams and Cr Greg Penna voted against the policy while Cr Mathew Evans abstained.
"I cannot support this motion as I believe it's not actually feasible to 100 per cent divest from the fossil fuel market at this stage," Cr Williams told the council meeting.
"It may not be for at least a decade or more. I can't see how this would be in the best interests of the council, the ratepayers or the residents."
Cr Margaret O'Rourke accepted that point but said "it is about starting somewhere".
Cr Alden's comments about the sky not falling in were not directed at Cr Vaughan but rather at external advice about potential ramifications of councils pulling money out of investment markets.
"It stated that if the local government sector was to pursue this approach to ethical investment hundreds of millions of dollars would be lost across councils," she said.
Cr Alden said the Bendigo council's own divestments had had a "relatively minor" impact on returns.
She said there would be plenty of financial institutions for councils to steadily take their business to as the market changed, especially if there are incentives from the state and federal governments.
Cr Alden's motion was one of two the Bendigo council signed off on this week ahead of gatherings of the MAV and ALGI.
The other was Cr Matthew Evan's push for councils to lobby state and federal governments for more digital connectivity in rural and regional areas.
"With more Australians moving to regional communities, we need more investment to support the current and future growth in our cities and regions," he told the Bendigo council meeting.
Cr Evan's notice of motion won unanimous support among the eight councillors at the meeting, including Cr Williams.
"It goes without saying that this digital connectivity and strong, stable communications are critical to regional and rural Victoria," that councillor said in support.
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Tom O'Callaghan
I grew up in Bendigo and I want to tell your stories.
I grew up in Bendigo and I want to tell your stories.
