Insurance Europe calls for carbon pricing to make green projects more financeable

Written by Adam Cadle

20/07/2020

The European insurance industry is again calling for an increase in the supply of long-term sustainable assets to meet the needs of institutional investors, and has emphasised the need for carbon pricing to reduce emissions and to make green projects more financeable.

In its response to a consultation by the EC on its sustainable finance strategy, Insurance Europe said “a global, reliable and significant carbon pricing with strong incentives for the real economy would likely have a more decisive impact on strengthening sustainable investments than uncoordinated national efforts”.

“Investors cannot transform the economy alone: public policies are needed to accelerate the transition and increase the supply of long-term sustainable assets.”

Insurance Europe also called for sustainability to be brought into the mainstream in an “affordable, simple and streamlined way, while finding the right balance in performing ESG analysis and identifying adverse impacts at reasonable costs”.

“This requires affordable centralised access to reliable, comparable and standardised digital ESG data, and balanced disclosures for customers and other users of ESG information.”

Finally, the industry called for ESG factors to be fully integrated into global, diversified portfolios, while accounting for sustainability risks.

“This involves filling the training gap among finance professionals and governance bodies, incorporating shared frameworks and assessment tools across financial actors and ensuring enhanced sustainability and financial literacy,” Insurance Europe underlined.

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