Coal

Published on November 25th, 2015 | by Joshua S Hill

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Allianz To Divest From Coal In Favor Of Wind Investments

November 25th, 2015 by  



One of the world’s largest insurers, Allianz, has announced it will begin divesting from coal in favor of investing in renewable energy.

Allianz is one of world’s largest financial asset managers, and the company announced on Tuesday, in concert with its Capital Markets Day, that it would begin phasing out coal. Specifically, Allianz stated that it would “stop financing coal-based business models,” such as companies that derive more than 30% of their revenue from coal mining, or generate over 30% of their energy from coal.

The announcement was made by the company’s CEO, Oliver Bäte, and is based at least in part on the two degrees Celsius target of the upcoming Paris climate negotiations, as well as the economic risks involved in continuing investments in coal.

The current details available are slim, and the company is intending to further expand on its decision later this week, but The Guardian quote “analysts” who are predicting the company’s decision could impact €4 billion worth of investments.

The divestment campaign has long been ramping up, and as of writing this, campaign network Fossil Free’s database has 489 institutions divesting to the tune of $2.6 trillion.

Concurrent to the divestment campaign has been the widespread attempt to convince governments to forego fossil fuel subsidies. The latest figures suggest that governments are spending more than ever on fossil fuel subsidies. Published earlier this month, a report by the Overseas Development Institute, with the Oil Change Institute, found that G20 nations were spending an average of $452 billion per year on fossil fuel subsidies. A report published late-October by the International Institute for Sustainable Development (IISD) and the Nordic Council of Ministers (NCM) revealed that removing fossil fuel subsidies in the 20 countries studied would reduce national emissions by an average of 11% by 2020.





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About the Author

I'm a Christian, a nerd, a geek, and I believe that we're pretty quickly directing planet-Earth into hell in a handbasket! I also write for Fantasy Book Review (.co.uk), and can be found writing articles for a variety of other sites. Check me out at about.me for more.



  • Dragon

    Haha. For a moment I thought this article was titled “Aliens To Divest From Coal”.

  • JamesWimberley

    We are still waiting for a major investor to start pulling out of oil and gas. Investors have burnt their fingers in coal, as valuations have crashed, and divestment now is cutting losses rather than anticipating them. I trust that investment committees everywhere are anxiously mulling over their oil portfolios.

    • Matt

      You are correct many of these jump the coal ship are just trying to stop the bleeding. But that bleeding has been going on for at least 5 years. So it isn’t clear that they really have their eye on the ball. Will they lead, follow, or get run over as oil and NG go through a similar path. You know some are still sitting in their cave saying “What happen to coal can’t happen to oil”. I divested years ago, after teaching my investment advisor a lot. And still 6 months ago during review he ask if I was looking for buy opportunities in fossil fuel. Didn’t I think they would bounce back.

      • Bob_Wallace

        Speaking of coal ships, anyone heard any news about coal ships themselves? Are they now starting to go unused? Both China and India are close to ceasing imports of coal.

    • Richard Foster

      The big divestment from Coal, started, as you say, after the crash had already started (have a look at Peabody energy’s share price which seems to be a good indicator). I suspect oil will be similar.

      The bad news is that this won’t hasten along the transition as we’d like, but the good news will be that when it hits, it will hit very hard.

      You have to remember that people will think “oh that can’t possibly happen to oil”

      • Bob_Wallace

        Five years.

        That’s my guess when it becomes obvious that oil will go down. That’s about how long it will take for most people to understand the value of EVs and for longer range affordable EVs to be available for sale in large numbers.

        • Richard Foster

          That would be my rough guess as well.

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