The European Parliament has called on pension funds and other financial institutions to commit to divesting fossil fuels and align their investments with the 2°C target of the Paris Agreement.

The plenary session of the Parliament in Strasbourg this week adopted a statement ahead of the UN Climate Change conference (COP23).

The text “Calls on governments and public and private financial institutions, including banks, pension funds and insurance firms, to make an ambitious commitment to aligning lending and investment practices with the global average temperature target of well below 2°C, in line with Article 2(1)(c) of the Paris Agreement, and divesting from fossil fuels, including by phasing out export credits for fossil fuel investments; calls for specific public guarantees to promote green investment and labels and offer fiscal advantages for green investment funds and the issuing of green bonds.”