Insurance is not a topic that typically comes up in most discussions related to the energy transition. Guest Editor Kevin O'Donovan, however, predicts that the insurance industry is going to play a more visible role in the energy transition in the coming years. Here is his logic.
Over the past few years, the role of finance has become front and centre when it comes to the energy transition. Financial institutions have come under pressure from their shareholders to only invest in what are seen as sustainable investments. Many of you would be familiar with all the debate happening around the EU’s Sustainable Finance Taxonomy, defining what will be seen as a sustainable investment. Such a ‘taxonomy’ has huge implications in terms of financing new infrastructure investments or simply refinancing existing infrastructure. Thus, the role of finance enabling our energy transition is seen as a given.
But what about insurance?