A new briefing on the coal insurance business of Talanx, one of Europe's leading insurance companies, reveals the weak spots in its recently announced coal exclusion policy. The analysis finds that loopholes in the announcement could allow the company to continue supporting expansion of the coal industry in Poland and Vietnam via its subsidiaries. As a result, these concerns cast doubt over the seriousness of the company’s climate ambitions on the day of its annual general meeting in Hannover (Germany).
On 18 April, Talanx announced it would not provide coverage to new coal plants, but would allow exceptions for countries where coal accounts for a particularly large share of the energy mix and access to alternative energy sources is insufficient.
This becomes a test case in Poland and Vietnam, two countries with a huge pipeline of new coal projects and where Talanx is involved as insurer. According to research by Unfriend Coal, Talanx’s fully owned subsidiary Tuir Warta is the biggest underwriter of the Polish coal market and has been found in 18 coal insurance contracts since 2013.
New research also found that Talanx bears high responsibility for the development of new coal plants in Vietnam. Its minority interest subsidiary PetroVietnam Insurance (PVI) currently insures six coal-fired power plants or plant extensions in the country.
Vietnam is a hotspot for new coal plants with 16.2 GW of installed coal capacity and plans for an additional 42.9 GW. This makes Vietnam the world’s third largest coal plant pipeline.
Read the article online at: https://www.worldcoal.com/coal/10052019/new-analysis-on-talanx-reveals-loopholes-in-its-recent-coal-exclusion-policy/