Natural calamities provide opportunity for promoting renewable energy

Published: Sunday 15 October 2006

Exploring options: A lesson fo (Credit: FEMA)Hurricanes and other such events that disrupt energy supplies could provide a 'window of opportunity' to promote renewable energy, according to the US department of energy. Climate vagaries have also made renewables enter the good books of investors in the US and Europe. Renewables can address the growing insurance risks associated with electricity reliability, according to Ceres, the Boston-based coalition of 50 institutional investors. The coalition's report, From Risk to Opportunity How Insurers Can Proactively and Profitably Manage Climate Change, identifies 190 products and services that address the causes and effects of climate change."Global warming is upon us, and it poses unprecedented new threats to the insurance industry and vast segments of society that rely on insurance for... financial security... Climate change is likely to have a profound effect on insured losses, which could lead to a crisis of affordability and availability of essential insurance for consumers, as well as solvency problems for insurers themselves," the report explains.

In keeping with this orientation, US insurer AIG and other firms have announced support for projects that generate tradable carbon credits from renewables.

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