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Committing to 100 million tonnes of CO2 over 18 years before the dust settles on COP26 just 280 miles away

Update

The Coal Authority has issued the Aberpergwm coal mine with a licence to mine an extra 42 million tonnes of coal, ignoring the est.100 million tonnes of CO2 this will generate and jeopardise the UK's and Wales' ability to meet their climate commitments. Check out what we're doing now to stop the Aberpergwm coal mine expansion.

The quick read:

Currently, the Welsh Government and the UK’s Government Ministry of BEIS are arguing over which has the legal power to cancel the impending licence for a coal mine extension in Aberpergwm, south Wales. EnergyBuild Ltd, the coal operator, is on the brink of getting a licence to extend an existing deep coal mine to extract a further 40 million tonnes of coal, emitting around 100 million tonnes of CO2 and methane, until 2039. The licence could be obtained any day, and work begin shortly thereafter (we’ve illustrated the main legal steps a coal mine takes between application and diggers on the land). This is a very live issue.

Demand Ministers block this coal mine extension now.

Squabbling ministers

The governments of Wales and the UK both believe that the other has the power to stop the coal mine extension from going ahead. In the meantime, and in the shadow of the recent COP26 in Glasgow, a licence to extract a further 40 million tonnes of coal could slip through any day. The estimated 100 million tonnes of CO2 and methane this would emit over the next 18 years, would discredit the much-boasted 2050 Net-Zero commitment, Boris Johnson’s recent statement in the press against new coal, and the Welsh Ministerial statement against coal in March 2021. The signal this may send to other world leaders, that they can make commitments then ignore them, is hard to quantify but may be even more significant. Ministers Lee Waters of the Welsh Government, and Michael Gove of the UK Government, need to come together to stop this coal mine and make good on their respective governments' climate commitments.

Local and global-local consequences

The distance between the coal mine and the nearest residence in Aberpergwm is just 330 metres. Although this is a deep coal mine rather than opencast, this proximity can still be associated with impacts from coal dust from coal stockpiles stored above ground, noise, HGV movements, and light pollution. Future impacts of the underground working are also uncertain with increasingly extreme weather events associated with climate change.

For people living in many parts of the Global South, on flood planes, or near sea-level, climate change is not an abstract threat for future generations – it's impacts are life and death, and are experienced now and locally to them. The line between who we think of as ‘local communities’ is beginning to blur as the impacts are increasingly experienced beyond the site of operations. The economic and health impacts of the coal mine extension going ahead or closing will be immediate, direct, and tangible on the residents in Aberpergwm. The impacts of the CO2 and methane from this coal mine will be delayed, indirect, and, although modelling tools attempt to quantify it, fairly intangible on communities threatened now by climate change. However, the consequences are profound for both groups, and must be considered.

Recycling the greenwash doesn’t make it more true

Cutting through the greenwash, a significant portion of the coal will be burned at steelworks releasing huge amounts of CO2 and other pollutants, jeopardising the rapid decarbonisation required of the global steel industry and other industries which are reliant on coal.

Energybuild Ltd

A visit to Companies House online will reveal a complicated operating structure of many small companies with similar names and shared registered addresses associated with Energybuild Ltd, the coal operator in Aberpergwm. The company itself has negligible assets, so the possibility of recovering funds if the company suddenly folded with liabilities is limited. The situation with its holding company, Energybuild Resources Ltd is also concerning, with net liabilities of £2.7 million and assets valued at £950 thousand as of the end of 2019 – meaning that if the company were to fold, around 65% of those liabilities may not be fulfilled, including restoration works.

Heritage in coal

Wales played a major role in mining the coal that powered the UK through an industrial revolution. Coal is a central part of a proud heritage in many communities throughout Wales, and for a few remaining areas, coal mining is still the major industry.

The closure of many coal mines under the Thatcher Government put thousands out of work, generating bitterness and deprivation that continues to this day. Much of this hardship could have been avoided if coal mining had been phased out and replaced by reinvesting some of the wealth that mining generated back into the communities that toiled to extract it.

Coal or unemployment?

Local shops and pubs, in particular, in recent press coverage have come out in support of a licence for the coal mine extension, highlighting their reliance on the custom of coal miners that work there. But without the support for creating alternative jobs that’s been absent so far, these businesses will be in the same position when the coal mine does eventually close.

Will the UK Government learn from its past mistakes in coal, and make good on its promise to ‘level up’ the UK with an approach that includes investment in infrastructure, retraining in desirable and viable jobs, and financial support for small and medium sized enterprises, particularly cooperative and social-interest companies that build and reinvest in their communities? Only when the UK and Welsh governments step up will communities in Aberpergwm have a genuine choice on whether to tolerate a coal mine nearby for another 18 years.

Coal is our collective heritage, but it cannot be our future

The Aberpergwm extension may represent the final gasps of an industry we owe much to but must move beyond. As one tenacious community member fighting a coal mine near Newcastle put it, "coal is our collective heritage, but it cannot be our future".

 

Following almost 4000 emails, we've followed up with an open letter to Ministers Lee Waters and Michael Gove.

Overview of the process to open a coal mine in the UK

Download in PDF

This is an illustrated step-by-step guide as to how a company gets the legal stuff they need in place before they can start a new coal mine, or extend an existing one. The information herein is a very simplified outline of the main steps to, a much deeper reading is recommended as understanding this process will highlight what the opportunities are for avoiding any future coal mining applications slipping through or reaching the stage of a resource-demanding public inquiry, like the West Cumbria coal mine application recently has.

Lloyd's of London Climate Memorial - #DefundClimateChaos Global Day of Action

Essential details

Join our creative actions on 29th October 2021 in either:

London

Time: From 0900 - 1100

Address: Lloyd's of London HQ, 1 Lime St, London, United Kingdom EC3M 7HA

Nearest tube station: Bank

Newcastle

Time: From 1500 - 1700

Address: Rotterdam House,116 Quayside, Newcastle upon Tyne, United Kingdom NE1 3DY

The action

Join us in either London or Newcastle for a memorial to bring to life the memories of every person harmed by the injustices of the climate crisis, as well as celebrate their fierce resistance to it.

In London this will be outside Lloyds of London, a company (not related to Lloyds bank) that profits from providing insurance to climate wrecking projects, without which they wouldn’t be able to go ahead. You’ll hear from Pacific Island Warriors, Silver Town Tunnel local campaigners, and others that are suffering climate change impacts and fighting climate wrecking projects.

In Newcastle, we will be outside the offices of Chubb, one of Lloyd of London's 'syndicates', who are also involved in the insurance of fossil fuel projects, such as the Adani coal mine. We will hear from campaigners opposing the opening of the West Cumbria coal mine, as well as from the Campaign to Protect Pont Valley, who will talk about resistance, loss, and what it means to live with a coal mine on their doorstep

You can sign up for the action now and receive updates, or just turn up on the day and follow us on Twitter or Facebook to stay up-to-date instead.

Anyone is welcome to bring their own memorial-themed materials to this action, and here’s a video on how to do that:

Background

The climate crisis is harming the poorest and least responsible of us first and worst. Five million people will die this year due to fossil fuels globally, only 40,000 of those in the UK. The blame for this falls squarely at the feet of governments, corporations and banks that continue to profit from death. As people globally face extreme and destructive weather, we will come together to demand care & repair with them.

The Lloyd’s of London insurance market, one of the world's largest insurers of fossil fuel projects. We want to shed light onto Lloyd’s of London's appalling environmental record, and the colonialist practices from which Lloyd’s grew. From the insurance of slave ships, to the insurance of climate-destroying projects that dispossess indigenous peoples of their land, Lloyd’s have blood on their hands.

See you on the streets!

Coal in 2021

Opencast coal extraction

Opencast coal extraction causes extensive damage to local environments by opening up the land like a quarry, destroying habitats and polluting the air and water. Imported coal, from Russia, Venezuela, Colombia, the USA and Australia, also carries significant environmental and human rights impacts.

As of July 2021 it was confirmed there are no more applications or appeals for opencast coal extraction in England. There are two opencast coal mines operational in South Wales.

Coal for steel (coking coal)

There are two potential sites for new underground coking coal mines. West Cumbria Mining Ltd and NAE want to extract millions of tonnes of coking coal a year from sites in Cumbria and the Scottish borders. The coal would be exported to European steelworks.

Both sites would produce coking coal which is processed into coke and used at steel works which use high carbon blast furnaces. Port Talbot and Scunthorpe steelworks use these methods and are the second and third biggest single source emitters of carbon in the UK.

It is possible to make steel without coal using electric arc furnaces and recycling as well as through direct reduction iron production. New methods to produce steel with hydrogen are being trialled.

Power stations

Coal-use in electricity declined to its lowest ever level in 2021, thanks to grassroots and NGO campaigning for a total phase-out of coal by 2025 which has now been brought forward to 2024.

There are now only three power stations left open in the UK, running occasionally.

Global impacts

Coal is the fuel that contributes most to climate change. Climate change impacts communities in the Global South, who least caused the problem, first and hardest.

The UK is also the financial centre of global coal mining, as many of the world's major mining companies are listed on the London Stock Exchange, as well as coal insurers and financiers.

The UK heads up the international 'Powering Past Coal Alliance' and hosts COP26 in 2021, but has yet to end coal extraction at home or fully end financial support for international coal mining.

West Cumbria Mining Ltd and EMR Capital - we reveal all.

Overview

Coal Action Network has commissioned research revealing massive debts of over £29million, Cayman Islands tax havens, corporate structures that undermine responsibility, and taxes that may not get paid.

Who owns who, and how

  • EMR Capital Resources Fund 1, LP. owns EMR Capital Investment (No.3B) Pte. Ltd.
  • EMR Capital Investment (No.3B) Pte. Ltd owns 80% of shares in West Cumbria Mining (Holdings) Ltd – enough to control it like a puppet.
  • West Cumbria Mining (Holdings) Ltd is the parent company of West Cumbria Mining Ltd.

Why does that matter?

If West Cumbria Mining Ltd gain planning permission for the coal mine, the local council will apply ‘section 106 conditions’ that’ll mandate its responsibilities such as remediating the environment at the end of mining. Legally, West Cumbria Mining Ltd. will need to fulfil these conditions (though they’re often ignored) as well as other responsibilities such as compensation if things go wrong – but it doesn’t have its own money to do that, as it’s financially dependent on EMR Capital. If these liabilities add up to more than the likely profit, EMR Capital could just asset-strip what little West Cumbria Mining Ltd owns, and walk away, leaving taxpayers in the UK to clean up the mess. A similar event happened with Margam opencast coal mine in 2010.

Who are EMR Capital Resources Fund 1, LP.?

A private equity fund that specialises in investments within the mining sector. EMR Capital Resources Fund 1, LP. and EMR Capital Investment (No.3B) Pte. Ltd have offices in the Cayman Islands tax haven, Singapore, Hong Kong, and Australia. The company typically invests in a mine for 3-5 years, then sells it onto another private equity fund at a profit.

Why does that matter?

Selling a company at a profit is often done by cutting costs so the company is more profitable, at least in the short-term. Costs can be reduced by cutting employees (which happened recently), benefits, and operating standards such as environmental protection. The location of the company’s offices mean it has little accountability to the UK government, or us, if things go wrong such as people are injured or the environment requires remediation.

Loans and financial dependence

EMR Capital Investment has loaned West Cumbria Mining Ltd at least £29 MILLION so far. The interest on a portion of this loan rose to 15% in 2020. As of 2020, West Cumbria Mining (Holdings) Ltd owed £947,545 in interest alone. West Cumbria Mining Ltd’s 2020 annual financial report documents that the company’s viability is dependent on EMR Capital’s financial support.

Why does that matter?

This means that West Cumbria Mining Ltd is vulnerable to bankruptcy if EMR Capital Investment pull out, which it has reportedly started to consider. That could mean that the mine is started, causing a huge amount of local environmental damage, but not completed, with the taxpayer having to fix the environment to the extent it can afford to.

Taxes

West Cumbria Mining (Holdings) Ltd is operating over £12million in losses that’ll be offset against any future trading profit. Together with repaying its loan of £29 million to EMR Capital Investment and huge start-up costs, the amount that West Cumbria Mining pays in UK tax will be minimal for a long time.

Why does that matter?

A company profits from the natural resources and infrastructure owned and funded by us. This costs us in damage to the environment, infrastructure, and loss of natural resources. A key part of why companies are permitted to do this, is because we receive a proportion of that profit back in tax - more than it costs us, though it's obviously difficult to price natural resources and the environment that'll be impacted. West Cumbria Mining Ltd's finances means that we end up paying more than we get back, with company executives walking away with bonuses and huge profits that happen outside the reach of the UK tax authorities.

See a PDF of our parody investment brochure from EMR Capital... are you convinced?

Original research by Vivek Krotecha, 2021

Published: 01/09/2021

Join these rallies to let this public inquiry know you STILL don't want this coal mine

Canaries were encaged and forced to accompany underground coal miners for early detection of the lethal gasses that could be released by mining. We are the canaries in this decision, and we'll be on the streets in West Cumbria and London on the first day of the public inquiry into the West Cumbria coal mine proposal to warn the Minister for Housing, Communities, and Local Government that our lives and so many others are on the line as we reach the tipping point for irreversible runaway climate change.

We plan to have little canary cut-outs at the London rally that you can write a message or draw on, creating a warning flock outside the Ministry. West Cumbrian activists against the coal mine proposal are also sending a handmade canary for us to deliver to the Ministry. If you want to help us hand out flyers to members of the public passing, that's great!  We'll have flyers available when you arrive.

Are you a journalist? See our press release.

Rally details

There will be 2 rallies on the same day in different locations - a local rally in West Cumbria at site of the proposed coal mine and a rally in London outside the Ministry that'll make the ultimate decision after the public inquiry.

West Cumbria rally

Date: Tuesday 07th September, 2021

Time: 09:00-10:00

Location: outside the site of the proposed coal mine, Woodhouse Colliery, Woodville Way, Whitehaven, CA28 9LF

London rally

Date: Tuesday 07th September, 2021

Time: 09:00-10:00

Location: outside the Ministry of Housing, Communities, and Local Government, 2 Marsham St, London SW1P 4DF.

Please only attend either rally if you are feeling well, sanitise your hands regularly, and if possible, wear a mask whilst in the vicinity of other people, particularly if you're planning to hand out flyers to the public. Where possible, please avoid public transport, particularly where that is crowded. See our Covid19 risk assessment.

What to bring

  • Warm, comfortable clothing, water, hand sanitiser, and a mask.
  • You don't need to, but if you want to make a banner - fantastic! But we're asking everyone not to brand banners with any group's logos that they may be a member of. That's because we want to keep the visual message focused on the West Cumbria coal mine proposal, and the absurdity of considering opening a new coal mine as we're at the tipping point of runaway climate change.
  • We'll supply some leaflets you can hand out to members of the public if you feel comfortable doing that, spreading the message futher.

Background

The proposed West Cumbria coal mine is going to a public inquiry called by Secretary of State, Robert Jenrick on 07 Sep 2021 and will last for at least 4 weeks. If the coal mine gets permission, it'll emit around 9 million tonnes of CO2 per year, and commit the UK to extracting 2.78 million tonnes of coal annually, until 2049 - or even 2070, if the mining company gets its way. The Climate Change Committee has officially stated this coal mine, expected to emit 9 million tonnes of CO2 per year for 40 years, is incompatible with the UK's climate change commitments. Promises by West Cumbria Mining Ltd of jobs and tax income are undermined by its investors, EMR Capital Resources, which has offices in the Cayman Islands tax haven - see our parody brochure for more information.

We want to ensure there is a visible show of public support for an end to coal mining in the UK, in solidarity with the local communities in Whitehaven, West Cumbria, who don't want this on their doorsteps, as well as communities living in the global south who'll bear the brunt of the climate change impacts this coal mine would contribute to. We want to show what the people think rather than what NGOs or campaign groups think. As such, we won't have any banners with our own logo on and we ask anyone attending not to bring branding of groups they may belong to.

Questions?

Email Anne@coalaction.org.uk and Daniel@coalaction.org.uk

Some of the groups involved in resisting this coal mine proposal

This campaign is primarily driven by committed Cumbrian activists for have been fighting this proposal for years. One of these Cumbrian groups is SLACC, who have pulled together a legal team to take on West Cumbria Mining Ltd's own legal team in the public inquiry. SLACC's website has a wealth of detailed information.

Friends of the Earth is working alongside the local campaign, and supporting it with capacity and training. Friends of the Earth are also taking an important role against the West Cumbria Mining Ltd in the upcoming public inquiry.

The latest cautionary tale: Halton Lea Gate opencast coal mine

Overview

Between 2008 and 2012, communities fought against the threat of an opencast coal mine on the edge of their picturesque rural Northumberland villages. Northumberland Local Planning Authority sided with the local communities and rejected the application in 2011. But that rejection was appealed by the applicant, HM Projects Developments Ltd. The planning inspectorate sided with the applicant and overturned the communities’ and Local Planning Authority’s rejection, based on the misplaced faith that their additional ‘section 106’conditions would prevent negative impacts on the local environment and community. Those conditions and promises were, of course, broken with damage to the local environment by HM Project Developments Ltd. as it proceeded in 2012 with permission to extract 140,000 tonnes of coal just 50 metres from the closest residence over the next 8 years. As the opencast coal mine neared the end of its profitability in 2020, HM Project Developments Ltd. declared bankruptcy, thereby abandoning the opencast site on the edge of the Halton Lea Gate village and breaking its promise to pay into the promised community fund or for environmental remediation. The joint administrators appointed to tie up the loose ends of the company’s finances and responsibilities decided to leave remaining coal reserves, restore the farmland, and market it for sale to finance some of the company’s debts, with finance from ExWorks, a US credit company.

A debt to the community

HM Project Developments Ltd. bankruptcy means that the £75,000 pledged to a community fund is unlikely to materialise. In retrospect, the Northumberland Local Planning Authority noted that it’s ‘section 106 conditions’ should have required HM Project Developments Ltd. to pay into the fund in a staged way throughout the project, rather than a lump sum at the end to avoid this scenario in the future. The bankrupt company’s joint administrators—Benjamin Wiles and Steven Muncaster of Kroll Advisory Ltd.—were appointed in 30 April 2020 and are apparently still in discussion with Northumberland Local Planning Authority on the community fund, but the outlook is not good as debts exceed £11 million, over 5x the predicted worth of the company’s remaining assets.

A debt to the local environment in 2020

Coal Action Network visited the site in July 2020 after it was abandoned by the company. There we were confronted with a hole in the landscape of rolling hills, toxic-looking pools that had wildlife tracks leading to them, large mounds and jagged cliffs of excavated soil and coal, and machinery left around the site. Overall, a poorly fenced dangerous place. All this in a North Pennines Area of Outstanding Natural Beauty, and just 50 metres from someone’s house.

A debt to the local environment in 2021—partly repaid

The complexity of established flora and fauna sacrificed around the UK at sites of opencast coal mining is lost for the long-term, and possibly forever. So-called ‘restoration’ cannot recreate these ecosystems, and doesn’t even attempt to offset the impacts that burning the coal will have on climate change. When we revisited the site of the Halton Lea Gate opencast in June 2021, the toxic-looking pools were gone and the restoration effort was underway with funding from ExWorks, a US credit company, to the tune of £653,422 (less than the fees of the joint administrators so far). ExWorks relationship to the coal mine and HM Project Developments Ltd. isn’t clear. The works began in February 2021, and a chat with an employee on the site confirmed most of the soil had been put back, and the restoration works were expected to be completed by September 2021. Already the impact of simply putting back the soil on the local landscape—though insufficient—was profound and underpins why this baseline must be adhered to for the sake of nearby communities and fauna.

The Halton Lea Gate opencast coal mine—history repeats… unless we do something about it

Before the coal mine in Halton Lea Gate was abandoned, Margam opencast coal mine was abandoned with just £5 million of the £56 million restoration bond in the pot, making for an even poorer quality restoration that remains a scar on the landscape. This is a story repeated across the UK, largely because:

  1. companies are not held to planning agreements which were inadequate to protect local ecosystems anyway.
  2. material climate considerations are unclear in national planning policy.
  3. local communities lack the resources, compared to developers, to input into decision-making on coal mining applications in their area.

Although coaling in the UK will hopefully continue to wind down, we must not repeat the same mistakes as excavation for lithium and other minerals ramps up.

National planning policy must give a clear and strong steer to screen all planning projects for their climate change consequences, not least coal mine applications. And the voices of impacted communities living around the sites of proposed developments must be centred in decision making by Local Planning Authorities, as it represents the main means by which local communities can democratically shape what happens around them. Only then can we prevent history repeating itself, with communities living locally and in the Global South bearing the brunt of climate-trashing projects.

Lloyd's of London marketplace & coal insurance - FAQs

Making the confusing world of insurance a little clearer

What is the Lloyd’s of London?

Firstly, it’s nothing at all to do with Lloyd’s PLC, the bank – they’re not great either, but that’s another story.

Lloyd’s of London is a large insurance corporation with an HQ in London but trade insurance globally. In its own words, Lloyd’s of London “oversees and supports the Lloyd’s market, ensuring it operates efficiently and retains its reputation as the market of choice for specialist insurance and reinsurance risk.” You can watch Lloyd’s of London’s very corporate video explaining what they do.

What is “Lloyd’s marketplace”?

Insurance companies use Lloyd’s of London’s marketplace much like sellers use eBay’s website. Just as eBay supports bidding between buyers and sellers, so does Lloyd’s of London, employing over 200 brokers to match insurance customers with insurance companies. And just like eBay, Lloyd’s of London offers some form of guarantee for insurance bought via their marketplace, encouraging trades through to be made through it.

What is Lloyd’s of London's connection to Adani and West Cumbria coal mines, and fossil fuels

Lloyd’s of London marketplace is in the top 4 for insuring climate-wrecking fossil fuel projects around the world. Lloyd’s of London’s marketplace is particularly attractive to large fossil fuel projects as Lloyd’s has a reputation for getting high-risk projects insured that other insurance companies won’t touch. One way it does this is by splitting an insurance policy, and spreading the risk, between insurance companies using their marketplace. This amounts to an insurance for climate chaos as it’s only with insurance that companies can take the financial risks to dig new coal mines, build new tar sand pipelines, and explore new gas and oil fields.

Lloyd’s of London has refused to rule out allowing Adani’s Carmichael coal mine in Australia or the West Cumbria coal mine in the UK to obtain insurance via their marketplace. If Adani’s Carmichael coal mine gets insurance and goes ahead, it would open up one of the world’s biggest coal deposits contributing to a climate catastrophe.

What is Lloyd’s of London doing to prevent their contribution to climate change?

Not much, and definitely not enough.

Lloyd’s of London have only committed to a policy of greenwash that is incompatible with our climate crisis, continuing to insure risky projects that no one else will touch. So far Lloyd’s of London has committed to asking insurers operating in their marketplace to stop insuring tar sands, thermal coal mines, and Arctic exploration, phasing this out by 2022. But ‘reinsurance’ for these worst offenders is allowed up until 2030.

This also leaves a huge range of climate-wrecking projects free to continue insuring their risk via Lloyd’s of London marketplace with no policy at all to discourage it. In practice, this means the planned West Cumbria mine could be insured via Lloyd’s of London marketplace as it intends to mine ‘coking coal’, not ‘thermal coal’, although both are eventually burned, producing similar emissions.

What more could Lloyd’s of London marketplace do to prevent their contribution to climate change?

Lloyd’s of London could most simply ban all fossil fuel insurance trading via their marketplace. Their own statement clearly indicates this would be possible; “Lloyd’s publishes minimum standards and monitors compliance with those minimum standards. Lloyd’s by-laws also set out a number of rules with which market participants are required to comply”.

Fossil fuel projects only amount to around 5% of Lloyd’s of London’s marketplace insurance trades, so the company would still have a future without selling out ours.

What would be the impact if Lloyd’s of London ruled out fossil fuel insurance?

Some of the fossil fuel projects would source insurance from other providers and marketplaces, but many using Lloyd’s of London marketplace have failed to secure insurance elsewhere—Lloyd’s of London is sometimes their last chance. Let’s not give it to them.

Insurance providers also look to one another in setting their policies, so if Lloyd’s of London drops fossil fuel insurance, it is likely other insurance traders and providers will too—with a bit of encouragement.

Insurance might not be the sexiest subject, but it is a very vulnerable link in the chain needed to start and continue these huge climate-wrecking projects. It’s time Lloyd’s of London take responsibility for the role its insurance marketplace has in our collective future.

What is an insurance policy?

A contract that a company or individual takes out with an insurer to protect them against specific risks in ways that are agreed and noted in the contract.

What is ‘claims made’ insurance?

Type of insurance policy that will cover insurance claims made whilst the insurance policy is in force – even if the event leading to that insurance claim happened before that insurance policy came into force.

What is ‘claims occurring’ insurance?

Type of insurance policy that will cover insurance claims for events that occurred whilst the insurance policy is in force – even if the claim for it happens after the insurance policy stopped being in force.

No related insurance:

They don't insure coal mines e.g. they just cover travel insurance.

What is ‘run-off’ insurance:

AKA: Not 'live' insurance. Type of insurance policy that comes into effect when a company stops trading. So, any claims made under it will relate to events that happened before the company stopped trading and the policy started. This is used by companies that had ‘claims made’ insurance, and want insurance in case anyone takes action against them after the company for the period of time after they stopped trading but are still liable.

Want to know more?

Day of action against Lloyd's of London

On the 17th May 2021, at 08:30am, people across the UK will join us in a day of action against Lloyd’s of London, one of the world's leading insurers of fossil fuel projects. We demand that they stop insuring climate chaos!

Take part in our UK-wide day of action against Lloyd’s of London (no relation to Lloyds bank) and their marketplace insurers of fossil fuel projects on 17 May - the day many will be returning to their offices after lockdown. We need to let the Lloyd’s of London's marketplace know we’re aware of the critical role they and their insurers play in enabling risky climate-wrecking projects from the first day they return to their offices.

How do I get involved?

There are actions outside the offices of fossil fuel insurers all around the UK - check out what's happening near you and sign up to get more info!

What kind of action?

Anything you want - get creative! An old bedsheet and a bit of paint is all you need for a banner. And we'll post you fliers to hand out to insurance staff and the public so you don't have to remember all the facts (email us a postal address).

We've made a full action brief that's got lots more details, ideas, background, resources, and legal stuff in.

Can't get out on the streets, or there isn't an action happening near you?

Please help us make a big impact on social media. Check out our social media pack for sample messages to share before the action and on the day.

Background

We’re demanding Lloyd’s of London insurers act now to rule out insuring the Adani (Carmichael) and West Cumbria coal mines, and fossil fuel projects more widely. Lloyd’s of London has so far only said they’re willing to rule out new insurance trades on Arctic exploration, thermal coal, and Canadian tar sands by the end of 2021…but allow the renewal of insurance of even these shameful practices until 2030. That’s an insult to the Paris Agreement and to all communities that will suffer the worst effects of climate change.

Lloyd’s of London marketplace is in the top 4 for insuring fossil fuel projects - and underwrite fossil fuel projects that other insurance companies won't touch, allowing mining companies to take risks exploring and unearthing new fossil fuels that we need to keep in the ground. Insurance is a vulnerable link in the chain needed to start and continue these huge climate-wrecking projects.

Despite being one of the main insurance marketplaces propping up the glob al fossil fuel industry, these insurance trades only account for around 5% of Lloyd’s of London insurance market. That means, with enough encouragement, insurance for all fossil fuel projects—such as the Adani or West Cumbria coal mine—could be banned. Join us in taking action to stop some of the riskiest, climate-wrecking fossil fuel mega-projects in their tracks.

STOP PRESS: Public inquiry called into West Cumbria coal mine!

In a surprise decision, the West Cumbria coal mine application is going to a public inquiry called by Robert Jenrick (Secretary of State), announced late yesterday (11.03.2021). Climate change will never be a local issue.

Why now?

  1. ‘Public controversy’ (this is literally your efforts!).
  2. The Sixth carbon budget was released in December—this coal mine alone would exceed the sub-allocation for active and old mines. You've since made it impossible for the Council and government to ignore that.
  3. Legal challenges (last week West Cumbria Mining Ltd applied for a Judicial Review of the Council’s decision to reconsider the application – a decision that again you helped make happen).

What now?

A public inquiry is a formal process started by a Minister (Robert Jenrick in this case) and run by The Planning Inspectorate where the facts of the case are examined more closely than in a council hearing. We now have another opportunity to expose the falsehoods within justifications for the West Cumbria coal mine and highlight the reasons it must never go ahead. These include:

  1. Over 85% of the mined coal would be exported, maybe more with high sulphur concentrations that are too much for the British steel industry – how does ‘domestic demand’ justify that?
  2. There’s nothing ‘neutral’ in new coal – it’s time to put that industry myth to bed.
  3. Jobs will be limited in time and number, and lower paid compared to what’s possible with investment in skilled green jobs.
  4. Approving new coal mines is incompatible with UK’s decarbonisation targets – and the Climate Change Committee has our backs on that.
  5. Approving a new coal mine during the same year the UK hosts the G7 and the COP26 summits, and as co-hosts the Powering Past Coal Alliance would signal to other countries they can pay lip-service to their climate change commitments.

As a grassroots supporter group, Coal Action Network will do what we always do, and that’s to fight for front-line communities to get their knowledge and voices heard in spaces like this public inquiry. We’ll keep you updated—but follow-us on Twitter if you use it, we'd like to share things with you there.