Reclaim Finance said the French state-backed reinsurer is the first public reinsurer in Europe to adopt such a policy

oil rig

French state-backed reinsurer CCR will no longer make new investments in companies developing new oil and gas projects across the value chain, according to a new investment policy.

Campaign group Reclaim Finance said the policy, published on 29 June, makes CCR the first public reinsurer in Europe to adopt such an approach.

The strengthened fossil fuel policy applies to new direct investments in companies developing new oil and gas fields, pipelines, liquefied natural gas terminals and oil or gas-fired power plants.

Reclaim Finance said the move means CCR will no longer finance companies it views as contributing to climate risks.

The campaign group urged other state-backed reinsurers in Europe, including Flood Re in the UK, as well as private re/insurers, to follow CCR’s lead.

Ariel Le Bourdonnec, insurance campaigner at Reclaim Finance, said: “The French state-backed reinsurer is setting an example for all state-backed reinsurers by ending support for oil and gas expansion.

“Insurers cannot claim to be acting to protect the public from floods, wildfires or extreme weather events if they are also investing in fossil fuel expansion.

“They have a responsibility not to invest in assets that make the problems worse.

“Other public and private insurers and reinsurers in Europe must follow this lead,” Le Bourdonnec added.

Reclaim Finance welcomed CCR’s policy change, but warned that an exemption for utility companies with a greenhouse gas emissions reduction pathway aligned with the goals of the Paris Agreement could leave the door open to some fossil fuel developers.

The group cited French utility EDF as an example, saying the company claims to have a transition plan but also has plans to build new gas-fired power plants.

Reclaim Finance said other public natural catastrophe reinsurance schemes in Europe that invest in corporate bonds should adopt similar policies.

It named Spain’s Consorcio de Compensación de Seguros, Italy’s SACE and the UK’s Flood Re among schemes with comparable responsibilities to protect the public.

The campaign group said such policies should also be a prerequisite for the creation of new public reinsurers in Germany and at European level.

Reclaim Finance said preventing the climate risks underwritten by public reinsurers should include no longer financing those risks through their investment portfolios.

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