Student activists and academics at the Queensland University of Technology (QUT) are celebrating after learning the university has committed to divesting its shares in fossil fuels.

The decision comes after an ongoing campaign by Fossil Free QUT, which included an open letter signed by more than 120 academics, calling for the university to join the global movement, following the success of similar campaigns at universities across Australia.

Vice-chancellor Professor Peter Coaldrake sent a statement via email on Friday informing staff of the decision to steer investments away from coal, oil, and gas companies.

"We have reviewed QUT's investments relative to climate risk and instituted changes to the university's investment strategy," the statement said.

"QUT is committed to an orderly and considered transition away from investment in fossil fuel companies."

Fossil fuel industry presents 'significant opportunity' to QUT

The Queensland Investment Corporation (QIC), which handles QUT's $300 million external funds purse, has been directed to ensure it has "no fossil fuel direct investments" and "no fossil fuel investments of material significance".

The move makes QUT the first university in Queensland and the second largest in Australia to withdraw investment in fossil fuel companies, and comes despite a strong focus on geological science (earth science) at the university's Gardens Point campus.

Fossil fuel industries comprise a large portion of employment for students graduating from earth science.

"We recognise that the fossil fuel industry is a significant contributor to Queensland's regional economy and presents a significant opportunity for QUT to influence this sector through the provision of leadership, education and research," Professor Coaldrake said in the statement.

In what they are calling a "major victory for the climate movement in Australia", Fossil Free QUT were today encouraging their supporters to contact the QUT Chancellery with messages of solidarity to counter the potential for a "sustained backlash" similar to the one experienced by the Australian National University (ANU) after it committed to divestment in 2014.

"We need to show QUT that we support its decision to divest, and encourage its Vice Chancellor and Registrar to stand behind their decision," the group said in a statement on its Facebook page.

QUT joins ANU, La Trobe University and the University of Sydney as major Australian universities to commit to fossil fuel divestment.