Insurance companies in California are now being urged to remove themselves from doing business with coal companies. The use of coal has taken a dive in recent years due to lower price of natural gas.
The lack of demand has led to a worrisome decrease in the use of coal. 10 years ago coal produced about 50 percent of the United States’ power supply, but only accounts for about 35 percent.
“The movement away from coal and the rest of the carbon economy poses a potential financial risk to insurance companies investing in coal and the carbon economy,” California Insurance Commissioner Dave Jones said. The commissioner is also requiring that insurance companies disclose their investments in the coal industry.
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