 — Insurance companies that have long said they’ll cover anything, at the right price, are increasingly ruling out fossil fuel projects because of climate change — to cheers from environmental campaigners. More than a dozen groups that track what policies insurers have on high-emissions activities say the industry is turning its back on […]){kind=link}
BERLIN (AP) — Insurance corporations which have lengthy mentioned they’ll cowl something, on the proper worth, are more and more ruling out fossil gas projects due to local weather change — to cheers from environmental campaigners.
More than a dozen teams that monitor what insurance policies insurers have on high-emissions actions say the business is popping its again on oil, fuel and coal.
The alliance, Insure Our Future, mentioned Wednesday that 62% of reinsurance corporations — which assist different insurers unfold their risks — have plans to cease masking coal projects, whereas 38% at the moment are excluding some oil and pure fuel projects.
In half, buyers are demanding it. But insurers have additionally begun to make the link between fossil gas infrastructure, akin to mines and pipelines, and the affect that greenhouse fuel emissions are having on different elements of their enterprise.
This consists of excessive climate occasions akin to hurricanes, that are forecast to grow to be stronger with world warming. Hurricane Ian not too long ago prompted tens of billions of {dollars} in injury within the United States.
Earlier this month Munich Re, one of many world’s greatest reinsurers, mentioned it could cease backing new oil and fuel fields starting subsequent April.
“Insurance is the Achilles heel of the fossil fuel industry and has the power to accelerate the transition to clean energy,” mentioned Peter Bosshard, the report’s writer.
That’s as a result of projects that require giant quantities of capital are unlikely to draw funding if they’ll’t get insurance coverage to cowl probably expensive mishaps.
Insure Our Future mentioned its annual scorecard of 30 corporations ranked Allianz, AXA and Axis Capital greatest for his or her coal exit insurance policies, whereas Aviva, Hannover Re and Munich Re got here out on prime for oil and pure fuel.
By distinction, some insurers akin to Berkshire Hathaway, Starr and Everest Re have adopted few or no restrictions coal, oil or fuel projects, it mentioned. The alliance additionally criticized Lloyd’s of London for saying plans for ending coal protection two years in the past however then declaring it elective.
Many of the insurers reviewed launched their restrictions within the final 12 months, although the precise insurance policies differ considerably, the report mentioned.
Some international locations have in the meantime proposed making use of the concept of insurance coverage to assist international locations going through large prices attributable to local weather change.
Germany, which chairs the Group of Seven main economies, and the V20 alliance of weak nations, chaired by Ghana, final week agreed to advertise the concept of a “global shield” towards local weather risks.
The proposal, to be mentioned at subsequent month’s United Nations local weather summit in Egypt, partly addresses calls for from poor international locations for extra monetary assist to deal with the loss and injury ensuing from rising world temperatures.
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