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LEAST-COST ENERGY:

13th September 2019

By: Martin Creamer

Creamer Media Editor

     

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More frequent extreme weather events are forcing insurers to re-evaluate coal mining and coal-firing risk. Last month, JSE-listed coal mining and energy company Exxaro Resources reported that it was experiencing higher insurance premiums in the renewal of its insurance policies, which coincided with the publication Renew Economy listing another wad of financial institutions that were shunning investment in coal altogether. This is not only because renewable sun and wind energy mitigates climate change, but also because of the business case that it presents. “Unsubsidised renewable energy is now the least-cost new source of electricity,” the publication reiterated. Only a few years ago, that was the pre-eminent position of coal. Even major mining companies are stepping up their commitment to the Paris Agreement, which they see as lessening an existential threat to humankind.

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