After Swiss Re, the world\u0026#039;s second-largest reinsurer, announced Thursday that it is moving to end coverage for most new oil and gas projects, climate justice campaigners who have long pushed for the insurance industry to shift away from fossil fuels offered cautious praise.\r\n\r\n\u0022Swiss Re is one of the world\u0026#039;s ultimate risk managers and the policy which it published today sends a strong message to fossil fuel companies, investors, and governments: oil and gas operations need to be phased out in accordance with climate science or they may become uninsurable by the end of the decade,\u0022 Peter Bosshard, global coordinator of Insure Our Future, said in a statement.\r\n\r\nAccording to Reuters:\r\n\r\n\r\nIn its annual sustainability report on Thursday, Swiss Re said it would no longer insure projects that get the go-ahead from their parent company from 2022, unless the company has an independently verified, science-based plan to reach net-zero emissions.\r\n\r\nBy 2025, Swiss Re said it wanted half of its overall oil and gas premiums to come from companies aligned with such a net-zero by 2050 plan, and by 2030 all its clients in the sector should have done so.\r\n\r\nAlso, from 2022, the company said it will no longer insure companies or projects with more than 10% of their production in the Arctic, apart from Norwegian producers.\r\n\r\nOn the issue of treaty reinsurance, whereby it insures bundles of risk in a job lot, Swiss Re said it expected to finalize a policy for the oil and gas sector in 2023.\r\n\r\n\r\n\u0022By taking steps to stop insuring new oil and gas projects and companies that won\u0026#039;t aim at aligning their activities with climate science by 2030, Swiss Re is headed in the right direction,\u0022\u0026nbsp;said Reclaim Finance director Lucie Pinson.\r\n\r\n\u0022The policy is not perfect yet,\u0022 she added, \u0022and we encourage its peers to build on it to fully align with a realistic 1.5°C scenario.\u0022\r\n\r\nThe International Energy Agency (IEA) said\u0026nbsp;last May that\u0026nbsp;there is \u0022no need for investment in new fossil fuel supply\u0022 if the world is to achieve a net-zero energy system by 2050 en route to meeting the\u0026nbsp;Paris agreement\u0026#039;s more ambitious global warming target.\r\n\r\nSwiss Re, said Pinson, should respond to the IEA\u0026#039;s landmark report by \u0022drawing a red line against fossil fuel expansion and excluding both projects and companies that cross that line well before 2025.\u0022\r\n\r\nSharing a detailed Twitter thread by Bosshard, Oil Change International celebrated Swiss Re\u0026#039;s move. Becoming the first major oil and gas insurer to deny coverage for most new fossil fuel projects is \u0022big news,\u0022 said the group.\r\n\r\n\r\n\r\nArguing that \u0022ending support for oil and gas projects is gaining real momentum,\u0022 350.org also praised Insure Our Future and encouraged its campaigners to \u0022keep up the good work.\u0022\r\n\r\n\r\n\r\nAccording to Bosshard,\u0026nbsp;Swiss Re\u0026#039;s phase-out commitment represents \u0022a first for the insurance industry\u0022 because it \u0022not only applies to the up and midstream sectors, but also to downstream companies (oil refineries, gas utilities, petrochemical plants etc.) without credible net-zero plans.\u0022\r\n\r\nHowever, he continued, \u0022the new policy includes some important gaps and contingencies.\u0022\r\n\r\n\u0022It will not cover new production projects which oil companies move forward as part of their ongoing operations,\u0022 said Bosshard. \u0022It also exempts Norway from its definition of Arctic oil.\u0026nbsp;The IEA doesn\u0026#039;t make any such exemptions.\u0022\r\n\r\n\u0022Most importantly, the policy hinges on the development of a credible oil and gas framework by the Science Based Targets initiative [SBTi], by which oil companies\u0026#039; net-zero plans will be measured,\u0022 he added. \u0022It\u0026#039;s crucial that the SBTi framework reflect the findings\u0022 of the IEA and the United Nations.\r\n\r\nSwiss Re\u0026#039;s new policy follows similar policies adopted last week by Hannover Re and Mapfre, said Bosshard, who pointed out that \u0022these three companies cover 21% of the global reinsurance market.\u0022\r\n\r\n\u0022Now, the Insure Our Future campaign calls on Munich Re, Lloyd\u0026#039;s, and SCOR, which together account for 26% of the global reinsurance market, to make commitments which build on Swiss Re\u0026#039;s approach by the time of their annual general meetings,\u0022 said Bosshard.\r\n\r\n\u0022We\u0026#039;ll be watching,\u0022 he added.