Fossil Fuel Divestment Gets Big Boos

October 7, 2022 | njspotlightnews.org

For the first time, legislators voted to force the state to end pension investments in the fossil fuel industry, while also tweaking New Jersey’s five-month-old ban on single-use bags.

Both actions proved controversial as opposition emerged, leading to questions whether either will make it into law. The requirement to end investing in 200 of the largest fossil fuel companies narrowly passed a 3-2 vote Thursday in the Senate Environment and Energy Committee, which also voted out changes to the current ban on single-use plastic and paper bags. That vote came amid concerns by some that it is premature to revise a law that’s only five months old.

NJ SEED: Applying politics to investment decisions for public employee pension funds first appeared in NJ during the Kane Administration. It was criticized at the time as being an unwise restriction on fiduciary responsibility. Some economists continue to believe it unwise, but today everything is based on politics.