Maine $17B Pension Fund Directed To Divest From Fossil Fuels

In a U.S. first, the state of Maine has passed legislation – bill LD99 – directing the $17 billion Maine Public Employee Retirement System (PERS) to divest $1.3 billion from fossil fuels within 5 years and directs the Treasury to do the same with other state funds. The move makes Maine the first U.S. state to commit to fossil fuel divestment through legislation.

While other states have recently taken steps to divest from fossil fuels, such as New York and Minnesota, Maine would be the first state to do so through legislative action. More than 1300 institutions with $14 trillion in assets have also committed to some form of fossil fuel divestment. 

While the bill has sparked arguments and debate about how pension funds manage their money, Richard Brooks, Climate Finance Director with Stand.earth, which is coordinating the national Climate Safe Pensions Network, feels that all public pension funds should address the mounting climate risk in their portfolios by holding onto fossil fuel investments. With more than $46 trillion in assets worldwide, pension funds are the world’s largest asset owners and among the biggest investors in fossil fuels.

As Stand.earth reports, the legislature action comes after a multi-year effort by Maine community activists and advocates. In February, a committee hearing saw numerous testimonies from supporters including Sierra Club Maine who identified environmentally positive investments that Maine PERS could make instead. Maine Youth for Climate Justice also testified in support of LD 99 stating “to tackle a broad issue such as the climate crisis, it must be dealt with comprehensively. Such a comprehensive response includes financial solutions, making L.D. 99 an important step forward.”