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Insurers’ LNG Help at Odds With Their Local weather Ambition, Report Says

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The underwriting of liquefied pure gasoline (LNG) capability within the US by main world insurers is at odds with their local weather ambition, based on a report from activist teams together with Public Citizen and Rainforest Motion Community.

Chubb, American Worldwide Group and The Hartford Monetary Companies Group are amongst underwriters listed on certificates of insurance coverage for seven US LNG export services that embody terminals in operation and beneath building, based on the researchers, who obtained the knowledge by way of 50 Freedom of Info Act requests. In no less than one case, the coverage had expired.

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The report highlights an irony within the insurance coverage business: Whereas some underwriters are pulling again from conventional protection areas as local weather change exacerbates wildfires, storms and flooding, they’re additionally persevering with to assist new fossil-fuel tasks anticipated to function for many years.

Though LNG generates about half the carbon dioxide as coal when combusted, the local weather advantages of coal-to-gas switching typically hinges on the quantity of methane that leaks throughout pure gasoline and LNG provide chains. The short-term local weather impression from the world’s present LNG provide chains, together with ultimate combustion of the gasoline, is about 1.5 billion metric tons a yr of carbon dioxide equal, based on a 2022 IEA mannequin. That exceeds the annual CO2 emissions of Japan, the world’s fifth greatest polluter.

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Chubb says on its website that its local weather objectives are aligned with the “two-degree Celsius goal outlined within the Paris Local weather Settlement” in addition to quantitatively supported science-based requirements methodology from the United Nations. The corporate or its subsidiaries are concerned in 4 of the US LNG export tasks, based on the report. Chubb declined to remark.

AIG says on its website it’s dedicated to succeed in web zero greenhouse gasoline emissions throughout its underwriting and investments portfolio by 2050 or sooner and that its dedicated to the objectives of the Paris Settlement. The Hartford plans to realize web zero emissions for its full vary of companies and operations by mid-century, based on its website. AIG declined to remark and The Hartford didn’t instantly reply to a request for remark.

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Picture: The Aristidis I liquefied pure gasoline (LNG) tanker docked on the Cheniere Liquefaction facility (CCL) in Corpus Christi, Texas on Dec. 4, 2023. Photographer: Mark Felix/Bloomberg

Copyright 2024 Bloomberg.

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