The eye-catching demo set off from City Square on Saturday afternoon.
Marchers carried placards calling for Leeds Council, Leeds MPs and Leeds University to end their investments in the fossil fuel and fracking industries.
According to campaigners, Leeds University has over £3.5m invested in the fossil fuel industry, while Leeds and Bradford councils, through the West Yorkshire Pension Fund, are investing over £900m in the fossil fuel and fracking industries.
Leeds and Bradford MPs, through their Parliament Pension Fund, are investing millions in fossil fuel companies such as BP, Royal Dutch Shell and Rio Tinto, they said.
It comes as fracking was halted at Cuadrilla's gas exploration site in Lancashire on Friday after tremors were detected underground.
Last week a 300,000-name petition was handed in to the Government against plans to give non-hydraulic fracking shale exploration "permitted development" rights, commonly used in home extensions to allow small-scale work without planning permission.
Saturday's event was organised by Friends of the Earth Huddersfield, Friends of the Earth EWNI, "Dead Against" and Fossil Free West Yorkshire.
Spokeswoman Deirdre Duff said: "Nobody particularly wants to heat their home with fossil fuels, but at the moment we don't have an alternative.
"The reason why we don't have an alternative or they are difficult is because the Government is continuing to support the fossil fuel industry.
"We have the technology to power the world with renewables - it is not a technological problem, it is political.
“People do have power to act on climate change if we join together and take collective action against the fossil fuel industry.
“We must show the fossil fuel industry up for the rogue industry it really is and use tools like fossil fuel divestment to break its political power and influence."
Fossil Free Leeds is due to have its launch meeting on November 24 at the Friends of the Earth offices in York Place at 11.30am.