'A really big deal': New York City's fossil fuel divestment could spur global shift

Economists say city's status as financial and cultural giant means move to sever ties with fossil fuel will catalyze others in US and around the world to follow

New York City's decision to sever ties with its fossil fuel investments is set to prove a catalyst to other cities in the face of the Trump administration's staunch support for coal, oil and gas interests, according to several leading economists.

On Wednesday, city officials announced that New York was to divest its pension funds of about $5bn in fossil fuel-linked money over the next five years. New York's total pension fund for its teachers, firefighters and other city workers is worth about $189bn.

Related: New York City plans to divest $5bn from fossil fuels and sue oil companies

Divestment is the opposite of investment. It's the shifting of stocks, bonds or funds from certain businesses or sectors.

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