The insurance industry in the nation has faced challenges due to climate-fueled disasters like floods and fires. As a result, insurers have increased premiums and exited high-risk markets. Interestingly, these same insurers provide coverage for fossil fuel projects, contributing to the climate crisis they also pay for.
Connecticut is taking steps to hold insurers accountable by introducing a bill that would impose a fee on insurers for insuring fossil fuel projects in the state. The revenue generated would fund climate resilience measures like sea walls and flood protection.
While a previous proposal failed, a new version attached to a climate resilience bill aims to address constitutional concerns by focusing only on projects covered in Connecticut. The assessment would apply to both new and existing fossil fuel infrastructure, contributing to a fund for climate resilience.
Supporters believe the bill, despite being less aggressive, would still raise significant funds for climate resilience. This move by Connecticut reflects a growing trend in other states to make polluters pay for their contributions to climate change.
The legislation, if passed, would send a message to insurers and the industry that states are ready to take action on climate change by holding them accountable for their role in financing fossil fuel projects.
