The Church's governing body passed the motion with near universal approval stating that all firms it invested in such as Shell and BP would need to meet the terms of the Paris climate agreement in the next five years for disinvestment not to occur.
Praising the General Synod for the move, Christian Aid's head of UK advocacy, Tom Viita, said: "Today's vote by the Church of England Synod shows the bell is tolling for the fossil fuel era. As Archbishop of Canterbury Justin Welby said last week, climate change is the great existential threat of our times, and today the Church has backed up his words with a clear decision to pull its investments from fossil fuel companies that don't quickly align themselves with the Paris Climate Change Agreement."
This isn't the first time the Church has demonstrated its commitment to seeing climate change tackled.
The church withdrew £12m in funds out of assets such as coal and tar sands oil following another Synod vote in 2015.
The Church however remains an investor in major fossil fuels companies.
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