Burning of fossil fuels contributes to climate change. The extent of the contribution is still under heavy debate and the onus of the responsibility has been a baton willingly passed on from industries to governments. The persistent problem in the world has pushed out a reaction from Insurance companies, that now have become vary of insuring Coal projects.
Suncorp in a recent announcement withdrew from all new thermal coal projects. The decision follows what has inflicted US and the latest developments in Europe, where insurance of fossil fuel projects may be becoming a no-go zone. The best example being the Adani Group, that may not have suffered investment woes due to self-financing strategies but may now be stuck with insurance, that won’t come close to it.
Fossil Fuel like coal, industries have received flak amidst alarming climate change reports worldwide. Insurance companies fear the risk of litigation holding fossil fuel companies responsible for climate-related damage. In Netherlands a group won a case against the Dutch government arguing it has breached its legal duty of care by not taking appropriate steps to significantly restrain greenhouse gas emissions and prevent damage from climate change. The government though has appealed, doesn’t seem to stand a chance. This may become a common occurrence in the future.
The damage done by these projects needs responsibility and study into the actual movement of climate change they affect. Where on one hand open blame of heating and releasing carbon dioxide by burning fuels is directly being charged for climate change, on the other, it has been noted that other multiple factors are responsible for the same. This is becoming the problem of allocating liability. Which can move easily from Fossil fuel companies to government that may be found inactive and insurance companies do not want to come under fire in the increasingly heating debate in Australia.