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Fossil fuels are not welcome in this UBC investment fund

Click to play video: 'UBC to remain invested in fossil fuels'
UBC to remain invested in fossil fuels
UBC to remain invested in fossil fuels – Feb 15, 2016

The University of British Columbia will exclude fossil fuel companies from its low-carbon investment fund, a move being applauded by a campus group that has been pushing for divestment.

The university has rejected calls to divest entirely from fossil fuels, but last year it established the $10-million Sustainable Future Fund to invest in companies with low carbon dioxide emissions.

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On Tuesday, the school said in an emailed statement that its board of governors voted to approve a framework for the fund that would see it invested in a fossil fuel-free portfolio managed by investment firm Jarislowsky Fraser.

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Donors can contribute over time and the university will increase the fund if it performs well in the coming years, with potential increases of $5 million in 2017, 2018 and 2019.

READ MORE: UBC votes against fossil fuel divestment

Investments tied to oil, gas and coal made up about 10 per cent of the school’s $1.4-billion endowment as of February 2016.

No Canadian university has divested fully from fossil fuels, but the University of Ottawa has also established a clean investment fund while Concordia University in Montreal has partially divested.

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