Allianz firms up restrictions on coal, oil sands business


  • Companies building new coal-fired power plants usually have no insurance coverage.
  • Companies should be excluded beforehand if they generate at least 25% of their electricity from coal and operate at least five gigawatts of installed coal-fired power plant capacity. According to the revised criteria, one of these two criteria is sufficient to be excluded

The second of the new rules will have a significant impact on Allianz's business relationship with Sev.en, an energy company in the Czech Republic, according to the Urgewald environmental protection group. Sev.en operates what Urgewald describes as "two particularly dirty coal-fired power plants", each 40 to 50 years old. Sev.en has a coal share in electricity generation of well over 50%, but has an installed capacity of less than five gigawatts. According to the old Allianz criteria, the company would still be insurable. According to the new criteria, it will not be.

Allianz's Czech subsidiary announced Thursday that it would cancel its remaining insurance policies for the plants by the end of the year.

Allianz has made further changes to its coal policy: Previously possible exceptions for the insurance of individual coal-fired power plants have been removed. However, companies can still get insurance if they don't meet the current criteria but have a coal phase-out plan that is compatible with the Paris Agreement's goal of 1.5 ° C.

"While the exit from coal is not yet watertight, Allianz will exclude more coal companies from insurance than before, which is positive," said Regine Rechter, energy fighter at Urgewald. “With these criteria, the pressure on the German coal giant RWE increases. After AXA announced an exclusion from RWE in March, Allianz has to end its business relationship with RWE until 2023 in order to keep pace with the update of its guidelines. Another leading insurer made it clear today that fossil giants like RWE are running out of time. "

"The alliance is finally taking action against companies with coal expansion plans, albeit belatedly, and should now be a driving force for the exit from coal in Europe by 2030," said Lucie Pinson, founder and managing director of the Urgewald partner organization Reclaim Finance. “However, these new announcements are not enough to meet the commitment to be a net-zero insurer and investor by 2050. It has been six years for the alliance to get to this point since it first adopted a policy on coal and the climate crisis is not taking small steps. "

Pinson urged the insurer to fill the remaining loopholes in its coal policy and refuse to do business with new oil and gas production projects.

The alliance has also published a policy to exclude the oil sands sector. The policy excludes oil sands projects and new oil sands pipelines, as well as companies that generate more than 20% of their revenues from oil sands.

“An exclusion of oil sands companies is long overdue. Many other insurers have already implemented this in recent years, ”said Richter. “For Allianz, it is a first step that cannot remain the last. If it seriously wants to be a leader in the area of ​​climate protection, we expect a policy that consistently restricts oil and gas operations as a whole. "


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https://businessservicesnews.ca/allianz-firms-up-restrictions-on-coal-oil-sands-business/

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