Greta Thunberg's eco demand risks 'implosion' of Edinburgh Festival Fringe warns organiser

But her decision to pull the plug on the event came after claims that the festival sponsor, Baillie Gifford, had invested billions in firms that profit from fossil fuels.

In a statement released through the festival, she said: “As a climate activist I cannot attend an event which receives sponsorship from Baillie Gifford, who invests heavily in the fossil fuel industry.

“Greenwashing efforts by the fossil fuel industry, including sponsorship of cultural events, allow them to keep the social licence to continue operating.

“I cannot and do not want to be associated with events that accept this kind of sponsorship.”

Organisers at the Edinburgh Festival Fringe have warned that arts organisations “can’t afford” to take “extreme decisions” on corporate sponsors and claim the entire sector could “implode”.

Speaking at the Fringe Society AGM, chair Benny Higgins said: “It is a very, very difficult landscape for the arts at the moment. The level of jeopardy is as bad as it’s been for a very long time and it’s not set to get much better anytime soon.

“When you make judgements you have to look at the facts. If you look at the performance and direction of travel of Baillie Gifford in terms of how it runs its own business, its performance in terms of its investments in fossil fuels is lower than its contemporaries and is going down, and its investment in renewable energy has been going up.

“That’s a very clear direction of travel.

“And they’ve been unbelievably supportive of the cultural sector.

“I disagree with Greta Thunberg. You’ve got to draw a line somewhere. I think where the line was drawn was the wrong place.”

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In response to Greta’s decision to no longer attend, Baillie Gifford issued their own statement, claiming: “We are not a significant fossil fuel investor. Only 2 per cent of our clients’ money is invested in companies with some business related to fossil fuels.

“This compares to the market average of 11 per cent. Of those companies, some have already moved most of their business away from fossil fuels, and many are helping to drive the transition to clean energy.”

“We are investing on behalf of our clients to grow their savings and retirement funds. When we invest in companies on their behalf, we do so over long time periods – typically 10 years or more – so this has naturally led us away from traditional fossil fuel firms.

Currently, 5 per cent of our clients’ money is invested in companies whose sole purpose is to develop clean energy solutions.”