May 4 (Renewables Now) - German insurer Allianz SE (ETR:ALV) said today it will stop providing insurance to single coal-fired power plants or coal mines with immediate effect to help drive the decarbonisation of the economy.
While companies that generate electricity from a mix of sources will continue to be insured, Allianz plans to phase out all coal-based risks from its property and casualty (P&C) insurance portfolios by 2040. The group aims to phase out its proprietary investments in coal-based business by 2040 as well. It will gradually lower the share of coal usage by mining companies and power generators that it finances. The share of currently 30% of electricity generated from coal by energy companies or revenue generated by a mining company via mining coal will go down in 5% steps to zero by 2040.
Allianz also said that with immediate effect it will stop investing in energy companies that jeopardise the two-degree target of the Paris Climate Agreement by extensively building coal power plants.
"We are convinced that our approach will further improve the risk/return profile of our portfolio in the long term, and that we will strengthen our position as a forward-looking investor," said Guenther Thallinger, Allianz management board member.
The insurer will work with customers to "find suitable solutions that enable a joint path towards a low-carbon economy," according to Chris Fischer Hirs, chief executive of Allianz Global Corporate and Specialty.
Allianz further said it will reduce its carbon footprint by 2040 by stepping up renewable electricity purchases, for instance.