Adani insurer Apollo drops Carmichael coal project as thousands take on global insurance giant Lloyd’s at #StopAdani rally
October 27, 2020
Adani’s Insurer and Lloyd’s of London syndicate Apollo has dropped Adani’s Carmichael coal project following pressure from the climate campaigners and the #StopAdani movement. Apollo confirmed that the insurer will not provide cover for Adani’s coal mine, rail project or coal port after their current construction policy terminates in September 2021.
The syndicate also revealed that Adani is still looking for insurance for the port and rail elements of their Carmichael coal project. In an email to Market Forces, Julian Cusack, Chair of the Board of Directors of Apollo Syndicate Management said:
I can confirm that we participate in one construction liability policy in respect of Adani Carmichael. Construction policies are generally taken out for single fixed periods and as such are not subject to renewal. This particular policy terminates in September 2021 after which we will no longer provide any insurance cover for this project. We have recently declined to participate in an additional policy relating to the Port and Rail extension and have agreed that we will not participate in any further insurance policies for risks associated with this project.
The news comes as over 500 people from all around the world joined a #StopAdani online rallied to call on global insurance giant Lloyd’s of London to stop providing insurance cover for Adani’s Carmichael coal project. In a unique move, the Stop Adani movement is taking on the global insurance giant which is the place for insurance of last resort for controversial and polluting fossil fuel projects like Adani’s Carmichael coal mine, that insurance companies are increasingly turning their back on.
Pablo Brait, Campaigner at Market Forces, said: “Every insurance company on Earth should be running a mile from the disastrous Adani Carmichael coal project. The project will help open up a massive new thermal coal basin in the midst of a climate crisis. It is encouraging to see that Apollo is now refusing future insurance to Adani. I hope to see many more make this commitment soon, particularly Arch, Brit and Hiscox. What Adani must now explain to its investors, bankers and contractors is how exactly it plans to insure the Carmichael mine into the future. With the mainstream insurers and now the Lloyd’s market turning their backs, how will it deal with the significant risks that running a massive coal mine, rail line and port entail? Adani needs to let its partners know what it will do if it cannot find insurance.”
Claudia Lang, Stop Adani campaign spokesperson said, “Adani insurers continue to drop Adani’s climate-wrecking coal project. We congratulate Apollo for being the 27th insurer, and 17th Lloyd’s of London insurer, to rule out Adani. Lloyd’s must follow their lead. It’s time for Lloyds to stop profiting from climate destruction by insuring dirty fossil fuel projects like Adani’s coal mine. Projects, such as Adani’s, trash the rights of Traditional Owners and fuel devastating climate impacts like bushfires, droughts and heatwaves. Last summer Australians experienced how devastating these climate fuelled events can be. It’s time for Lloyd’s to clean up their marketplace and stop insuring Adani’s coal”
Inangaro Vakaafi, Pacific Climate Warriors Polynesian Council of Elders member, says: “We are pleased that another Lloyd’s of London insurer has dropped Adani’s dangerous coal project, and we demand that Lloyd’s of London acts immediately to protect the Pacific by ruling out insurance for Adani’s coal project. Mining and burning coal from Adani’s coal mine wrecks our chances to protect our Pacific homelands from climate change impacts, especially rising sea levels which threaten us more and more every year. As Pacific people, we will continue to fight for our homes, our ways of life and our communities.”