Burning coal is the worst carbon emitter in producing electricity and also releases carcinogenic toxins and pollutants. The United Nations considers the global phase-out of coal to be a key climate priority.
Yet the Washington State Investment Board (WSIB) holds $2.6 billion of our public investments in coal. According to the Global Coal Exit List, WSIB’s private investments in coal companies likely total an equal or greater amount. The dollar value of private, indirect investments has not been disclosed.
WSIB continues to hold these investments even though more and more financial data points to coal divestment as a sound financial strategy. The Institute for Energy Economics and Financial Analysis reports that the fossil fuel sector has underperformed for the past decade compared to other investment opportunities. Competitive market forces now undermine growth in the fossil fuel sector, creating a negative financial outlook for this sector over the long term. Divesting from coal would be consistent with WSIB’s fiduciary duty to maximize the value of its investments for its beneficiaries.
Coal Divestment in other Western States
Other states have directed their public pension investment boards to divest from coal. In early 2024, an Oregon coalition (including Oregon’s Third Act working group) successfully advocated for legislation to divest from coal. In 2015, California passed legislation requiring state pension funds to divest from companies that generate at least half their revenue from coal mining.
Opportunity for Legislation in Washington
Divest Washington and Third Act Washington worked together throughout the past year to engage and educate state representatives and their staff about strategies to move divestment forward. We are excited that Senator Noel Frame of the 36th District will sponsor legislation in the 2025 Washington legislative session!
What the Washington Coal Bill will propose
The framework for the bill builds upon successful legislation in other western states. Key provisions under discussion for the bill will direct the Washington State Investment Board to:
- Eliminate certain investments in companies that mine, process or sell thermal coal, but allow WSIB to retain investments in companies that are transitioning to clean energy;
- Complete divestment from such coal funds by January 1, 2028;
- Halt new investments in coal, and
- Provide an annual report to the legislature on actions taken pursuant to this legislation.
Can You Help Advocate for the Bill?
Please contact tawa-policy@googlegroups.com if you can email or meet online or in-person with your state representatives to share information about the coal bill and ask them to sponsor and support this legislation. We’ll support you with tools and training to be a good advocate! You can watch a recording of our December 2024 advocacy training if you would like to get involved in supporting this legislation.