Glasgow COP26 must ‘signal end’ for coal, UN Secretary-General tells insurers

Written by Michael Griffiths

09/06/2021

United Nations (UN) Secretary-General, António Guterres, has said that Glasgow COP26 must “signal the end” of coal.

Speaking at today’s Insurance Development Forum, Guterres urged insurers to stop public support for coal by the end of the year.

The Secretary-General suggested the insurance sector has a “key role” to play, with every country, city, financial institution and company needing to adopt plans for transitioning to net-zero emissions by 2050.

“We face three imperatives in addressing the climate crisis,” Guterres said.

“First, we need to achieve global carbon neutrality within the next three decades. Second, we have to align global finance behind the Paris Agreement, the world’s blueprint for climate action. Third, we must deliver a breakthrough on adaptation to protect the world — and especially the most vulnerable people and countries — from climate impacts.”

Insurance companies control over $35trn of assets under management, while almost 20 insurance companies have joined the Net‑Zero Asset Owner Alliance that was convened in 2019. Guterres encouraged the insurance industry to align its portfolios and investments with net‑zero by 2050.

“Your investments should not be contributing to climate pollution but should be directed towards climate solutions,” he added. “Invest in renewables, low and zero-carbon transport and climate-resilient infrastructure.

“The Alliance is the gold standard in terms of setting credible and transparent targets and timelines to back the net-zero pledges that members have made. I encourage more to join these collective efforts and ensure asset owners send a strong signal across the investment chain.

“We need net-zero commitments to cover your underwriting portfolios, and this should include the underwriting of coal — and all fossil fuels. COP26 must signal the end of coal. I support the G7 commitment to end all public international support for coal by the end of this year. Your industry needs to follow suit.”

The Secretary-General also stated that the insurance sector must “emphasise adaptation”, as well as mitigation. He highlighted recent UN calls for better catastrophe-triggered instruments, easier access to flexible finance and increased support for regional adaptation and financing.

“The insurance industry should continue to place risk capital and technical expertise behind disaster resilience,” Guterres added. “It can also invest more in developing countries, especially in low-carbon, climate-resilient infrastructure.”

Related Articles