Lib Dems: the London Stock Exchange should close the doors to oil
The Liberal Democrats have proposed that no new oil and gas companies be listed on the London Stock Exchange (LSE), while halting bond issuance.
Lib Dem leader Ed Davey, speaking to The Guardian, said companies already listed in the UK would have two years to create a “cohesive plan” for net zero by 2045. If companies fail on this front, the LSE will eliminate them.
Davey then called on pension funds to divest by 2035. The exchange would wipe out any business with fossil fuel assets by 2045.
The Lib Dem leader’s suggestions match statements from Extinction Rebellion, which this week protested against fossil fuel funding.
“So if you really want to tackle climate change, you have to turn this private capital from dirty to clean. And that’s a fundamental role for Britain in global leadership on climate change, ”he told The Guardian.
Davey said the plan would only apply to companies working on fossil fuels used for combustion.
The idea that investments in oil and gas companies are safe is a “lie,” he said. “They are not safe. If the City of London doesn’t take this seriously, it is risking its own future.
Davey outlined plans for Neptune Energy to hold an IPO in London. Reports released in May suggested the company could raise $ 5 billion.
A UK decision would demonstrate climate leadership, he said. “We don’t have to wait for someone else to do it. And we would also show a leadership role to other financial centers. I think New York under the president [Joe] Biden would have a real problem if the UK stole the march. “
Davey said the current UK government was “completely unnecessary” on the environment. He pointed to the potential dissatisfaction with conservative seats where people want more action to tackle climate change.
The Guardian did not report a response from Davey on the Cambo field. Prime Minister Boris Johnson appeared to support development. Opposition leader Keir Starmer called on the government to drop the Siccar Point-led project.
The Lib Dems released a climate policy brief in 2019. At this point, the party said the UK will continue to need oil and gas as raw materials for chemicals and hydrogen. .
There are 12 Lib Dem MPs in Westminster.