Ireland has become the first country to make such a measure.
The move will see no public funds be used for fossil fuel companies or associated investments.
As reported in the Independent.ie: “The Irish Parliament passed the historic legislation in a 90 to 53 vote in favour of dropping coal, oil and gas investments from the €8bn (£6.8bn) Ireland Strategic Investment Fund, part of the Republic’s National Treasury Management Agency.”
The bill was introduced by Deputy Thomas Pringle and will be presented to a financial committee for final approval within the coming weeks.
“This principle of ethical financing is a symbol to these global corporations that their continual manipulation of climate science, denial of the existence of climate change and their controversial lobbying practices of politicians around the world is no longer tolerated,” Mr Pringle said.
“We cannot accept their actions while millions of poor people in underdeveloped nations bear the brunt of climate change forces as they experience famine, mass emigration and civil unrest as a result.”
The ruling will force the Ireland Strategic Investment Fund to sell off all fossil fuel investments. The aim will be to invest in clean and renewable energy in a bid to reduce climate change.