A MONMOUTHSHIRE councillor has described as ‘very disappointing’ news that Welsh council pension funds are still investing huge amounts in fossil fuel industries, including money that will go to developing fracking.

According to a new report ‘Divest Fracking; how UK councils are banking on dirty gas’ the Greater Gwent Local Government Pension Fund, run by Torfaen County Council but used by other councils including Monmouthshire County Council, is investing over £149 million in fracking companies in Argentina, USA, Canada, Australia, China and Oman. 

It’s the largest investment being made by any Welsh council, with Dyfed next on the list at more than £130m.

The investments are being made into companies that have huge global fracking operations like BP and Royal Dutch Shell. 

The news comes as the fracking industry is poised to frack for gas for the first time in seven years in the UK - while in Wales there is a moratorium on fracking and the Welsh Government is currently consulting on its proposed position not to grant any new licenses when the power over these licences is devolved to Wales in October.

MCC Labour councillor Martyn Groucutt, describing news of the investments as ‘very disappointing’ said: “While our communities in Wales might not be directly affected by fracking, we firmly believe that we need to set a clear marker that clarifies that we should be investing in renewable energy. 

“We should never be supporting forms of energy that threaten the world with the potential for catastrophe through global warning, but rather we should be setting a clear example to others that there is a better way that will protect the world for our children and our grandchildren as they grow up in the future." 

Friends of the Earth Cymru spokesperson Bleddyn Lake added: “At exactly the same time as the Welsh Government is proposing to effectively kill off any prospects of fracking in Wales, the news that Welsh Local Authority Pension Funds are investing money in companies who continue to frack in other countries around the world is shocking.

“Increasing extreme weather events around the globe show that climate change is really taking hold so we must all do all we can to reduce our climate emissions.

“Welsh councils won’t be faced with fracking applications in their areas when the effective ban on fracking comes into Wales, so they shouldn’t be profiting from fracking in other people’s back yards. We need to see a clear commitment from them to remove all investments, direct or indirect, from fossil fuel companies.”

Gareth Ludkin, divestment campaigner with Fossil Free Cymru argues that “fracking companies have been linked to human rights abuses and are damaging both communities and local landscapes around the world”.

 “Fracking is also opening-up a new frontier of fossil fuels that we cannot afford to burn if we are to avoid catastrophic climate change. Our councils must take a stand against fracking and stop fuelling this dangerous industry through their investments.”

In March this year, MCC unanimously voted to pass a motion calling on the Greater Gwent Pension Fund to divest from fossil fuel companies.

Full divestment commitments have so far been made by two UK local government pension funds, with a further five making partial commitments.

The campaign has received backing from Unison and the TUC. In addition to the ethical argument there is now a financial argument to protect peoples’ pensions with the possibility that fossil fuel assets will fall in value due to advances in technologies for energy efficiency and renewable power and stronger climate legislation.