CAMPAIGNERS have begun a protest after Edinburgh University rejected calls to pull its investments from fossil fuels.

The university said it would withdraw investments from the most polluting fuels, coal and "tar sands", if there were realistic alternative sources of energy available and the companies involved were not investing in technology to cut carbon emissions. It also said it would seek to change the behaviour of companies in which it invests.

However, the university's court unanimously decided not to pull its investments after a review group said full divestment would have an impact on learning, teaching and research.

It is understood over 70 students in the School of Engineering have signed an open letter addressed to the school head Professor Hugh McCann, angered by his own public opposition to the fossil fuel divestment campaign.

The group were responding to Prof McCann's submission to the university's Fossil Fuels Review Group, which said that "the potential negative consequences of any degree of disengagement by the university from fossil fuel-related activity are incalculable."

Some students lay down in protest on the steps of the building where senior vice principal Professor Charlie Jeffery gave the decision.

It came after the FFRG, headed by Prof Jeffery, said that while taking no action on the issue was "unacceptable" investment in fossil fuels "could not be deemed 'wholly contrary' to the university's values".

The University of Glasgow became the first academic institution in Europe to divest from the fossil fuel industry last October, voting to begin divesting £18 million from the fossil fuel industry and freeze new investments across its entire endowment of £128m.

It is understood the University of Edinburgh's endowment fund is the third largest in the UK, valued at £230m with an estimated £9m invested in the likes of BP and Shell.

Dr Aaron Thierry, of the university's Global Change Research Institute, said the decision was "deeply disappointing" and he accused the institution of "clinging to the past".

"The university has forgone a key opportunity to show true leadership in the face of the climate crisis," he said.

"By allying itself with the fossil fuel industry ... the university has shown that it places short term self-interest above the long term implications for its students and the planet."

Environmental campaigners also criticised the university for missing a "clear opportunity" to take a moral lead on tackling climate change.

Friends of the Earth Scotland finance campaigner Ric Lander said: "The university has missed a clear opportunity to take a moral lead on tackling climate change and stand up for environmental justice."

And WWF Scotland director Lang Banks said: "It's disappointing that Edinburgh University has chosen not join the growing number of organisations opting to divest from climate-trashing fossil fuels.

"The science is clear, to protect our climate the vast majority of known fossil fuel reserves must remain unburned and in the ground."

Edinburgh University said it would work with companies to reduce their emissions and continue, through research and teaching, to help develop alternative energy sources and technology which captures and stores carbon emissions from power plants.

It also said it would seek to change the behaviour of the companies in which it invests, both in fossil fuels and other sectors, by requiring them to report on their emissions and by benchmarking them against best performance in their sector.

In addition, the university said it will prioritise low or zero-carbon investments by identifying and replacing investments with lower carbon alternatives were available.

Prof Jeffery said that through its research activity and its teaching the university would continue to explore alternative sources of renewable energy and develop low carbon technologies.

"The university believes that we should seek means through our investments to support the transition from a high-carbon to a low-carbon society, as long as actions taken are consistent with other university objectives and values," he said.

He said: "In reaching its decision, the university does not see choices as limited to 'no change' or 'pull out of all investments'."

The university warned that many people in developing countries were still dependent on fossil fuels for providing heating, clean water and refrigeration, and an abrupt shift from fossil fuel use could hit some of the world's poorest communities.