Lloyd’s insurer Brit says it will not insure Adani coal mine – a bigger issue for the ESG investors

The coal industry is in the spotlight for its higher levels of greenhouse gas emissions than crude oil

Chinas 2020 coal output rises to highest since 2015 undermining climate pledges - Energy News Beat

Energy News Beat Publishers Note: If the laws can not be voted in, there can be forced change through banks and insurance companies. Consumer pressure can reach far whether the opinions are right or wrong. 

Major Lloyd’s of London insurer Brit will not insure Adani Enterprises‘ Carmichael thermal coal mine, it said on Tuesday, adding to a growing list of Lloyd’s insurers who have made similar pledges.

Carmichael has provoked controversy in Australia with its plan to open up a new thermal coal basin at a time of growing concern over global warming, in a region that is in need of jobs.

“Brit does not, has never, and will not write any policies relating directly to the Adani Carmichael coal mine itself,” Brit said in an emailed statement.

“Brit also confirms that it does not plan to renew any risks involving any other works directly associated with the project.”

Twenty-six Lloyd’s syndicates have now said they will not insure the mine, according to action group Insure Our Future.

Adani has begun construction at Carmichael together with an associated rail project, with plans to start producing 10 million tonnes of coal per year from 2021.

The coal industry is in the spotlight for its higher levels of greenhouse gas emissions than crude oil.

Many insurers, particularly in Europe, have pulled back from insuring thermal coal, but Lloyd’s of London insurers have continued to do so, industry sources say.

This is likely to change after Lloyd’s issued its first climate strategy for its 100 syndicate members in December 2020, ending its previous hands-off approach to the issue.

About Stu Turley 3230 Articles
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.