Prime European companies underwriting 30% of US coal regardless of internet zero commitments

A latest report by Insure Our Future reveals that main European insurers are supporting practically one-third of US coal manufacturing regardless of their commitments to realize net-zero emissions.

The report highlights insurers like Lloyd’s of London, Zurich, and Swiss Re among the many prime ten underwriters for 25 main US mines, contributing to over 60% of the nation’s coal manufacturing in 2022. These insurers underwrite 13 mines, constituting 30.7% of nationwide output.

The insurers overlaying probably the most coal manufacturing are as follows:

Coal is a big contributor to CO2 emissions, and the US stands because the fourth-largest coal producer globally, mining 595 million quick tons in 2022 alone. Regardless of mounting international strain and focused campaigns, Insure Our Future mentioned that main insurers are exploiting loopholes or disregarding their very own insurance policies to proceed underwriting coal mines.

AIG emerges as the biggest underwriter of US coal, insuring seven mines accounting for 28.1% of the nationwide output. Lloyd’s of London follows, underwriting 10 mines, constituting 22.8% of the output. Whereas Lloyd’s goals to steer the market in direction of a net-zero underwriting place, it doesn’t mandate or prohibit the underwriting insurance policies of its market members.

The report additionally highlights the necessity for insurers to commit firmly to stop insuring all coal mining in OECD international locations by 2030 and scale back their protection of coal by 50% by 2025, aligning with the actions taken by different main insurers based mostly on local weather science.

The report underscores the urgency to deal with coal emissions, emphasizing that emissions from coal combustion must fall drastically by 2025, 2030, and 2050 to remain inside a 1.5°C international warming restrict. Nonetheless, international coal manufacturing reached an all-time excessive in 2022.

Moreover, lots of the insurers talked about additionally present owners and small enterprise protection. Nonetheless, insurers are more and more withdrawing from climate-affected areas or elevating premiums as a result of worry of serious monetary losses from climate-related pure disasters, leaving house and enterprise homeowners extremely weak.

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