The Net-Zero Asset Owner Alliance, a group of top global insurers and pension schemes with combined assets of $5 trillion, has urged companies to abandon thermal coal projects after setting stricter carbon limits on their portfolios. These investors, including German insurer Allianz, warned companies owned by the group that they would not finance, invest, insure, plan, develop, or build new thermal coal projects, including coal plants and mines.
These companies are required to develop their own programs to shift away from thermal coal. If the companies failed to develop a plan, the investors would give sanctions, including divestment. The companies also need to cancel all new thermal coal projects, including mines and related infrastructure, under pre-construction phase. At the same time, existing coal-fired electricity generation with no carbon capture and storage capability will have to be phased out. Coal plants which are currently under active construction are exempt from this guidance.
