The Net-Zero Asset Owner Alliance, which consists of several of the world’s biggest insurers and pension schemes, has pressured companies they invest in not to finance, insure, build, develop, or plan new thermal coal plants. They warn of sanctions including possible divestment.
According to the alliance, developed economies have to phase out the majority of thermal coal by 2030, and by 2040 there should be a global shun of the commodity. It pushed all firms owned by the group to develop their own plans to transition away from thermal coal.
A member of the alliance, Germany’s Allianz, commented, “If no long-term carbon footprint reduction can be produced, the members will need to escalate and ultimately divest.”
The alliance has issued a guide that includes no further thermal coal power plants should be financed, insured, built, developed, or planned. The guide, of course, excludes the coal plants currently under active construction.
Immediate cancellation of all new thermal coal projects that are in a pre-construction phase, including coal mines and related infrastructure, as well as the supply of other products or services is encouraged.
The group added that all unabated existing coal-fired electricity generation, which is not captured by carbon sequestration or storage, should be phased out.
