Insuring the Risks of Global Warming

William Greider in an article about The New Colossus: The New Politics of Capital has some interesting things to say about the insurance industry's assessment of the risks of global warming. Here's what he says:

The noose of global warming is tightening on US industry, as the Kyoto Protocol enters active enforcement. The global reinsurance firm Swiss Re has warned its corporate clients to come up with strategies for global warming or risk losing their liability coverage. The Association of British Insurers warns that "businesses responsible for high emissions of greenhouse gases could be held liable for the damage that is caused by climate change."

CERES, the environmental coalition that does strategy and research for Nappier's network, explains that the business risks go further than lawsuits and regulation. Electric utilities that build new power plants without incorporating carbon reductions may find they have misused billions in capital and are stuck with obsolete plants. Auto companies that continue to resist the transformation to nonpetroleum cars will lose market share to forward-thinking competitors like Toyota. Energy firms that ignore renewable sources are missing future business opportunities.