Czech utility finds alternative as insurers pull coal cover

(Reuters) — Czech utility CEZ said Friday it had found alternative insurance for its coal-fired power plants after two providers said they would stop covering them from next year as part of an industry drive to drop climate-damaging business.

Insurers Generali Ceska Pojistovna and Ceska Kooperativa of the VIG group have reached an agreement with CEZ to end cover of the plants, the companies said.

“We are reducing our activities in insuring coal power plants,” Generali said in a statement, adding it was aiming to rapidly de-carbonize its portfolio.

CEZ did not give details of its alternative solution.

“The trend is clear; this is after mutual agreement," a CEZ spokesperson said.

"We have already set up a new system of insuring our coal plants from the next year onward. We will secure these end-of-life sources until they are definitely decommissioned.”

CEZ presented a strategy outlook last month planning to shut most of its coal capacity by 2030, cutting the proportion of coal in its production mix to 12.5% from 36%, and adding 6 gigawatts in renewable sources.

Coal has been in retreat in Europe and the United States as countries pledge to cut their carbon emissions.

On Sunday, the Group of Seven nations pledged to rapidly scale up technologies and policies that accelerate the transition away from coal, including ending new government support for coal power by the end of this year.