The world’s largest reinsurer, Munich Re, has pledged to cease investing in or insuring oil and gas contracts or projects. This includes the planning, financing, construction or operation of new oil and gas fields, new midstream oil infrastructure and new oil-fired power plants. The company’s approach to net-zero is also why it declined to finance the East African Crude Oil Pipeline this year. From 2025 Munich Re will also require high emitting oil and gas existing clients to make a “credible commitment” to reaching net-zero by 2050. Other major insurance firms including Allianz, Swiss Re and Hannover Re have made similar commitments. The withdrawal by the insurance industry from the oil and gas sector will significantly affect the ability of such projects to be developed in Africa, as projects that require large amounts of capital are unlikely to attract investment if they are unable to obtain adequate insurance.
