New Westminster is hopeful the Municipal Finance Authority will soon be making fossil fuel free financing available.
On Monday, council received a staff report regarding I the city’s investment portfolio as of Dec. 31, 2019. It had a balance of $179 million, which was $16 million more than a year earlier – an increase the city attributes to funds being set aside for major capital projects.
At Monday’s meeting, Coun. Patrick Johnstone sought a staff update about fossil fuel divestment and opportunities for the city to move some of its investments into a fossil fuel free fund with the Municipal Finance Authority.
“We have been in contact with the MFA and they have expressed that they have received a lot of interest in pursuing a fossil fuel-free investment product. They expect to be able to announce that at their AGM, and they have said we could share that information,” said Colleen Ponzini, the city’s director of finance. “The fund would be very similar to the bond fund that we currently hold with the MFA , so it would be a very good product for the City of New Westminster.”
For the past two years, Johnstone has raised the issue of fossil fuel-free investment opportunities when the city receives its investment report.
“It’s good to hear this is an option that’s coming up. I still think it’s important,” he said. “More than ever it fits with our larger climate action.”
Mayor Jonathan Cote said New Westminster has played a role in encouraging the Municipal Finance Authority to consider fossil fuel-free investment options. Not only has New Westminster been one of the leading advocates to have the MFA look at divestment options and fossil fuel-free investments, but he said the city has also been connecting other likeminded cities.
“That’s really what has helped the MFA be a little bit more open to this idea,” he said. “Two years ago the MFA was not seriously looking at this.”
Cote, who is serving his first year as a director on the Municipal Finance Authority board, said he’s been able to raise the issue there.
“But it’s a collection of advocacy work between our city and other cities that have really pushed the MFA into seriously looking at this,” he said. “I think it’s certainly very consistent with the work we are doing with our seven bold steps for climate change and our declaration of a climate emergency, but there’s a growing movement among a number of cities that are looking for these types of actions.”
