Chinese insurers reject Adani's coal
More major global insurance companies have rejected Adani’s controversial Carmichael coal project, with news that no Chinese insurer will provide cover for the coal mine and rail line.
The Saturday Paper reports that in November 2020 the former New South Wales Premier Bob Carr wrote to the Chinese ambassador calling on the Chinese government to stop the People’s Insurance Company of China (PICC) offering insurance coverage to Adani. Soon after, a reply to the letter noted it had been well received in Beijing and that no Chinese insurer was willing to insure Adani’s Carmichael coal project.
With the news that no Chinese insurer will insure the project, Adani's options for insurance for Carmichael have narrowed further, raising doubts about Adani’s ability to obtain critical insurance it needs to operate the coal mine. Thirty-nine insurance companies have given public commitments to not insure Adani’s coal project, including the ten largest Lloyd's of London insurance syndicates. Five of Adani’s current insurers have pledged not to renew coverage. In May, Adani’s key rail line construction contractor, BMD, admitted to a parliamentary inquiry that it had been unable to secure critical insurance after a global search.
With the Chinese Central Government appearing to have effectively placed a blanket ban on insurance for Adani, campaigners are calling on Lloyd’s of London to follow suit and publicly rule out any insurance for Adani Carmichael once current policies expire.
Pablo Brait, campaigner with Market Forces said:
“The number of insurers ruling out Adan’s climate-wrecking coal project continues to grow, yet Lloyd’s of London and its laggard syndicate Hamilton, and non-Lloyd’s specialist insurer Convex, are yet to rule out this disastrous project. Their untenable position, in light of worsening extreme weather around the globe, is seriously risking their reputations. ”
“Adani is opening up a huge new thermal coal basin when the science is clear that new coal mines cannot go ahead if we are to meet the climate challenge of this century. Adani’s Carmichael project is undermining global efforts to cut emissions, and any insurer willing to support this project is contributing to that undermining. ”
"With more and more insurers turning their backs on Adani’s climate wrecking coal project, Adani has an obligation to explain to its shareholders and business partners how it will insure the risky Carmichael coal project for the decades it intends to run it.”