The Copenhagen City Council is expected to approve a proposal to drop all investment in fossil fuel holdings.
If the proposal is approved on Tuesday by the finance committee, the Danish capital will sell off its stock and bonds in coal, oil and gas, which is thought to be worth 6.9 billion kroner (£700m), reports The Local.
The decision, if passed, will make Copenhagen the country’s first investment fund to sell its stocks and bonds in fossil fuels.
The idea was initiated by a small-left wing party, before Mayor Frank Jensen took an interest.
Speaking to Danish newspaper, Information, Mayor Jensen said: “Copenhagen is at the forefront of the world’s big cities in the green transition and we are working hard to become the world’s first Co2 neutral capital by 2025.
“Therefore it seems totally inappropriate for the city to still be investing in oil, coal and gas.
“We need to change that and I think this will sit well with Copenhageners’ desire for a green profile for their city,” he added.
Currently, it is unclear how much of the city’s money is invested in equities and bonds in the fossil fuel sector, but the divestment is expected to cost around one million kroner (£100,000).
Councillors are unsure as to when the money will be withdrawn, according to the Guardian.
The Mayor hopes other cities will follow Copenhagen’s divestment commitment.
Copenhagen is following in the footsteps of Oslo, who became the first capital city to divest from fossil fuels in 2015, after taking out its £4.9 million that was invested in a bid to combat climate change.
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