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Insurance company Korean Re says it will no longer back new coal-fired power projects or coal mines starting in 2023

December 06, 2022

Reinsurance News:

Korean Re has announced that it will no longer provide reinsurance for new coal mining or power plant construction from the beginning of next year.

The move was cautiously welcomed by Insure our Future, which said that new restriction were weaker than those of Korean Re’s international peers. It said that Korean Re’s current policy also allows exceptions based on national energy policies or demand in developing nations, despite the global need to phase out coal to meet 1.5°C.

Peter Bosshard, a coordinator at Insure Our Future, said: “While we welcome this move from Korean Re, its new coal restrictions are weaker than the policies of all its international peers. They do not address reinsurance treaties for ongoing coal operations and even allow continued support for many new coal projects.”

He added: “The policy also ignores the need to end support for new oil and gas projects. Korean Re should strengthen its fossil fuel policy so it reflects climate science and the best practices of the industry.”

This latest move follows similar declarations from major reinsurers around providing coverage for fossil fuel-related activities.

[Pete Carvill]

More: Korean Re rules out cover for coal mining or power plant construction

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