Lloyd’s warned over risks of underwriting coalmine

ClientEarth is warning Lloyd’s of London of legal and financial risks associated with the Carmichael coal mine in a letter, prompted by the group’s failure to rule out underwriting the controversial project.

Climate finance lawyer Stephanie Morton, author of the letter, said: “It is difficult to see how an insurer could justify underwriting the Carmichael coal mine. The project is crawling with financial, environmental and reputational risk – and is strongly contested both locally and internationally. Banks are keeping well away from Carmichael and, logically, so should insurers.”

Lloyd’s announced it would implement a ‘coal exclusion policy’ last year, which would detail red lines around investing in coal – but has not made the criteria publicly available.

ClientEarth’s lawyers are calling on Lloyd’s to publicly confirm the criteria and implementation of its coal exclusion policy, the steps it is taking to manage coal-related risks, and its position on the underwriting of the Carmichael coal mine by its syndicates.

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