Wed. Aug 17th, 2022

Willis Towers Watson (WTW) has advised risk projectors to explore and make recommendations over the emerging landscape problem accruing from the climate change mitigation plans. WTW is a renowned risk analyzer, an international insurance provider, and solutions company. The company’s yearly Renewable Energy Market Review pointed out that the mitigation of climate change, the switch to renewables and carbon-free electricity, and pressure from Environmental Social Governance (ESG) are the primary accelerators of the deprived state that the landscape will tourn yo be once renewable energy projects take over the energy industry.

WTW advocates for the announcement of the implications of surpassing the scales, regulatory measures, and leniency to warn the renewable energy developers from destroying the landscape. Switching to better technologies and innovation practices is an excellent concept in resolving global warming, but not at the expense of the land. The Renewable Energy Market Review narrates that the renewable energy sector will be exposed to insurance market difficulties, which the insurers are using to restore last year’s losses to reinstate their positions on the profitability scales. The review highlights that global markets surged from 10 to 40 percent, implying that they were performing well.

The report indicates that the maintenance, natural calamities, maturation of assets, operations, lender responsibilities, technological changes, and the coronavirus pandemic-sequestered supply chain have forced the renewable energy insurance markets to raise their prices to meet the expenses. The chief of global natural resources for WTW, Graham Knight, stated that the renewable energy sector is operating at a disadvantageous position marred with risks and problems and the coronavirus pandemic, which has struck the economy insurance demand from all dimensions. Knight added that there’s a likelihood of climate-change risks and ESG exacerbating the current situation if not dealt with at this moment.

Knight recommended the pursuit of ESG and the mitigation of climate change problems while projecting their risks in relation to the landscape problems to ensure that they strike a balance that would maintain all the aspects on the right path. He explained that the renewable energy companies must understand the effect of the energy sector switching to their side, why climate change is disturbing the landscape, and how they can subvert the situation to their advantage. Nevertheless, the transition to clean energy has minimized global warming in some parts. Other countries decided to implement the ban on gasoline vehicles early to ensure that the transportation sector follows in the global objectives.

By Adam