Convex Insurance, the London-based insurance company, is targeted this morning at the London Market Conference by environmental organisation Market Forces, putting further pressure on the insurance company to rule out underwriting the controversial Adani Carmichael coal project.
Convex has not ruled out the project despite 40+ other major insurers having done so. The Adani Carmichael coal mine in Australia is one of the most environmentally and socially destructive projects worldwide, according to Market Forces.
It will emit 4.6 billion tonnes of CO2 – equivalent to more than eight years of Australia’s annual greenhouse gas emissions – and unleash proposals for even larger mines in the Galilee Basin.
If all these mines go ahead, the Galilee Basin alone could produce over 5 per cent of global carbon emissions by 2030. The scale of the mine is so vast that it puts global climate targets in danger.
In late 2019, after being denied insurance by mainstream insurance companies, Adani was able to secure coverage for the Carmichael coal project via insurers at Lloyd’s of London.
However, while Adani Carmichael has managed to obtain sufficient insurance so far, its options in the Lloyd’s marketplace are rapidly shrinking, with five of Adani’s current insurers – the latest being Ascot – now publicly refusing to renew their insurance policies associated with the project.
So far, 106 companies have ruled out underwriting the project, including 42 major insurance companies. One notable exception is London-based Convex Insurance. This makes Convex one of the only major insurance companies left that is willing to underwrite the project.