Coal is now too hot for insurers to handle

(Eco Business, 6 Dec 2019) Empires were once built on it, but coal is now too hot for many former backers as more insurers withdraw.

It’s rapidly running out of friends in the financial world: coal is now too hot for many big insurers to want anything more to do with it. The burning of coal is one of the key factors behind rising emissions of climate-changing greenhouse gases.

Now insurance companies, which play a vital role in the financing of coal plants, are announcing plans to withdraw from the sector, saying that backing organisations seeking to expand coal operations is incompatible with the 2015 Paris Agreement on climate change.

AXA, the French insurance and financial services conglomerate, is the latest to announce its withdrawal from coal projects, though this divesting programme will in some cases be phased in over a number of years.

“The fight against climate change requires engagement in a global collective action”, says Thomas Buberl, AXA’s chief executive officer.

“A plus 4°C world is not insurable. As a global insurer and investor, we know that we have a key role to play. In the spirit of the Paris Agreement, we want to accelerate our commitment and confirm our leadership in the fight against global warming”.

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Eco Business, 6 Dec 2019: Coal is now too hot for insurers to handle