Coal Action Network and Money Rebellion groups held a rally outside Probitas1492’s London office last Wednesday, calling on it to rule out any further insurance for Adani’s climate-wrecking Carmichael coal project in Australia.
This rally follows insider information obtained by Market Forces indicating Lloyd’s of London insurer Probitas 1492 is an underwriter of Adani’s Carmichael thermal coal project. Specifically, Probitas has been named as insurer of the Carmichael rail line, coal haulage operation (Bowen Rail Company) and NQXT coal port (formerly Adani Abbot Point Terminal).
Both Lloyd’s of London and Probitas 1492 were contacted by Market Forces in late October, presented with the information and given a chance to respond. Neither did.
If true, this is damning evidence that Lloyd’s non-mandatory guidelines asking syndicates not to take on new thermal coal risks do nothing to prevent the world’s most destructive businesses obtaining coverage through the insurance marketplace.
Lloyd’s of London has a long history of supporting the Carmichael coal project, with evidence pointing to it obtaining all or some of its insurance via the Lloyd’s market since 2019. Community pressure has convinced 28 Lloyd’s managing agents to commit to never insuring Carmichael, including five that were providing insurance at one point (Brit, Apollo, Ascot, Aspen, Tokio Marine Kiln). In total, 45 insurance sector players and 113 major companies have committed to not go near Adani Carmichael.
This puts Lloyd’s and Probitas 1492 well and truly in the laggards club when it comes to taking the climate crisis seriously. The climate science and modelling from the International Energy Agency demonstrates a need to prevent all new coal, oil and gas production projects from going ahead in order to hit net zero emissions by 2050 and avoid more than 1.5 degrees of warming. Lloyd’s and Probitas are failing the most basic of tests on this front.
The Carmichael coal mine is one of the most controversial projects in Australia’s history. It is being contested by the Wangan and Jagalingou Traditional Owners who have not given their free, prior and informed consent. It will drain the region of billions of litres of water per year, putting agriculture in the region at risk.
With Adani planning to make it the biggest coal mine in Australia, Carmichael would produce enough coal over its lifetime to emit 4.6 billion tonnes of CO2 emissions, equivalent to over ten years of the UK’s annual greenhouse gas emissions.
This disastrous coal mine will increase industrialisation in the already distressed Great Barrier Reef World Heritage Area, and in the midst of a climate crisis, fuel worsening floods, heatwaves and bushfires.
Any corporation that values its reputation would be running a mile from the Carmichael project. If corporate social responsibility really does matter to Probitas (as it says it does on its website), then it must join its peers and make a public commitment to not renew its coverage for Adani’s massive new thermal coal mine.
Tell Probitas1492 to rule out any further insurance for Adani’s disastrous Carmichael thermal coal project.