Divestment
Fossil fuel divestment means ending new investment in the fossil fuel industry — which includes fossil fuel exploration, extraction, refining, processing, or infrastructure — and phasing out existing fossil fuel investments in public funds, such as state pensions, over time in favor of other climate-friendly, or at least climate-neutral, alternatives.
Pension funds, for example, invest people’s retirement savings into portfolios of companies that are expected to provide strong returns over time, which often includes fossil fuel companies. To divest, fund managers have to identify fossil fuel companies within a portfolio, withdraw funds, and then allocate these funds to other companies that have comparable returns on investment. Divesting from fossil fuels can minimize risk and result in stronger returns on investment.
States have several options to divest or minimize the emissions associated with public funds. State legislation can prohibit public funds from making new investments or renewing existing investments in specific publicly traded companies, in any companies whose primary business is in fossil fuel extraction or production, or in certain types of fossil fuels, such as coal. If they are not required to fully divest, states can require funds to prioritize investments that reduce emissions and/or climate risk. States can also set greenhouse gas emissions reduction targets for their investment portfolios; the most ambitious targets aim to achieve net-zero emissions with their investments.
Key Resources
The Climate Solutions Gap: An Assessment of U.S. Public Pensions’ Investment Strategies
State Economic Power Project: State and Local Pension Plans
The Long Term Will Be Decided Now: Why Climate Risk Demands System-Level Action from Investors
Addressing the Risk of Climate Change: A Comparison of US Pension Funds' Net Zero Plans
Model States
Maine
Maine’s public employee retirement system (MainePERS) is required to to divest from fossil-fuel stocks, bonds, and private equity financing by 2026. The state treasurer is directed to do the same with other state funds.
However, a December 2025 report notes that MainePERS investments in fossil fuels was at 5.4% in 2025 and is expected to be under 4% by 2026, following the Attorney General's interpretation that the law did not require it to divest in certain areas unless it was part of a sound investment strategy.
New York
The New York State Common Retirement Fund has a goal of achieving net-zero greenhouse gas emissions across its investment portfolio by 2040.
Oregon
The Oregon State Treasury has a goal of achieving a net zero emissions investment portfolio for the Oregon Public Employees Retirement Fund (OPERF) by 2050, with an interim goal of 60% reduction by 2035.
The Oregon Investment Council and the State Treasurer are directed to ensure that OPERF is not invested in thermal coal companies or any fund containing a thermal coal company. The Investment Council and Treasurer must also manage and report on climate-related financial risks to OPERF, and show preference to investments that reduce greenhouse gas emissions.
Divestment By State
| Status | State Sort descending | Region | Components | Year Enacted | |
|---|---|---|---|---|---|
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Southeast | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
West | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Southwest | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Southeast | |||
| Enacted |
Empty column
The Public Employees’ Retirement System and the State Teachers’ Retirement System (CalSTRS) are prohibited from making new investments or renewing existing investments of public employee retirement funds in thermal coal companies, starting in 2017. CalSTRS has pledged to achieve net zero greenhouse gas emissions across the CalSTRS Investment Portfolio by 2050, or sooner, with an interim goal of reducing emissions from the portfolio by 50% by 2030. Establishing Policies
Empty column
|
West | 2021 | ||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
West | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Northeast | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Southeast | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Southeast | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Southeast | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
West | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
West | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Midwest | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Midwest | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Midwest | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Midwest | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Southeast | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Southeast | |||
| Enacted |
Empty column
Maine’s public employee retirement system (MainePERS) is required to to divest from fossil-fuel stocks, bonds, and private equity financing by 2026. The state treasurer is directed to do the same with other state funds. However, a December 2025 report notes that MainePERS investments in fossil fuels was at 5.4% in 2025 and is expected to be under 4% by 2026, following the Attorney General's interpretation that the law did not require it to divest in certain areas unless it was part of a sound investment strategy. Establishing Policies
Empty column
|
Northeast | 2021 | ||
| Enacted |
Empty column
The Maryland State Retirement and Pension System (SRPS) Board of Trustees established a Climate Advisory Panel to advise the board on climate risk when considering investments for the pension and retirement system. Establishing Policies
Empty column
|
Southeast | 2024 | ||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Northeast | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Midwest | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Midwest | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Southeast | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Midwest | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
West | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Midwest | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
West | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Northeast | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Northeast | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Southwest | |||
| Enacted |
Empty column
The New York State Common Retirement Fund has a goal of achieving net-zero greenhouse gas emissions across its investment portfolio by 2040. Establishing Policies
Empty column
|
Northeast | 2020 | ||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Southeast | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Midwest | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Midwest | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Southwest | |||
| Enacted |
Empty column
The Oregon State Treasury has a goal of achieving a net zero emissions investment portfolio for the Oregon Public Employees Retirement Fund (OPERF) by 2050, with an interim goal of 60% reduction by 2035. The Oregon Investment Council and the State Treasurer are directed to ensure that OPERF is not invested in thermal coal companies or any fund containing a thermal coal company. The Investment Council and Treasurer must also manage and report on climate-related financial risks to OPERF, and show preference to investments that reduce greenhouse gas emissions. Establishing Policies
Empty column
|
West | 2025 | ||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Northeast | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Northeast | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Southeast | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Midwest | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Southeast | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Southwest | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
West | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Northeast | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Southeast | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
West | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Southeast | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
Midwest | |||
| Not Enacted |
Empty column
State divestment means ending new investment in the fossil fuel industry and phasing out existing fossil fuel investments in public funds, such as state pensions, over time. States can also set greenhouse gas emissions reduction targets for their investment portfolios. Empty column
|
West |