Governor Hochul announces $6.5 million to support insurance innovation for climate technology solutions
Governor Kathy Hochul today announced $6.5 million to support Insurance Innovation for Climate Technology Solutions, a new program focused on researching and developing new insurance policies and products. that will drive the adoption of clean technologies in New York State. The program will provide funding for products that manage the financial risk associated with climate change, supporting the state’s Climate Leadership and Community Protection Act national goal of reducing carbon emissions by 85 percent d 2050.
“New York State is working hard in our fight against climate change, and that includes investing in industries that will develop and advance clean and green technologies,” Governor Hochul said. “By promoting innovative policies that will create more sustainable climate technology, we are taking bold steps to address the challenges of climate change. My administration remains focused on supporting key initiatives that will benefit both businesses and consumers while contributing to our state’s national leadership in climate efforts.”
The New York State Energy Research and Development Authority (NYSERDA) will select a program administrator to develop this new initiative, manage operations, leverage industry expertise, and drive research and development to establish new models of risk. The Program Administrator will also select innovative insurance ideas, products and services, such as insurance for residential and commercial renewable energy projects, that will develop new business models to enable future climate technology solutions. The program administrator will receive up to $1.5 million to work with Managing General Underwriters (MGUs) and Managing General Agents (MGAs) who can research, develop and test new insurance products, and it will award up to $5 million in competitive grants that are expected to be announced in 2023.
Doreen M. Harris, President and CEO of the New York State Energy Research and Development Authority, said: “Addressing the financial risks of climate change through research, development and the advancement of insurance innovation for clean and efficient technologies is a win-win situation for New York businesses and consumers. The availability of this significant R&D funding will ultimately support new business models that seek to overcome barriers to bringing new products to market and build on Governor Hochul’s comprehensive approach to achieving a carbon-neutral economy. by the middle of the century.
NYSERDA will accept applications from qualified organizations until October 12, 2022 and will competitively select a program administrator. Applicants must demonstrate economic benefits and implementation in New York State. A scoring committee will evaluate all proposals against the published criteria. Each nominee must show how they can promote the research and development needed to bring new insurance products and services to market to meet the state’s climate and clean energy goals. This includes soliciting new insurance ideas, managing program development and growth, and risk reduction for climate technology solutions and services.
State Senator Kevin Parker said: “While many may not realize the price of climate change, the occurrence of floods, droughts, wildfires and hurricanes, which are amplified because of it, has cost our country billions When Hurricane Sandy hit New York, an estimated $8 billion in damage resulted from human-caused sea level rise The cost of climate change is further exacerbated by the lack of adequate preparedness for the conditions extreme weather that have now become more common than rare. Investments such as this – NYSERDA’s $6.5 million in climate-related financial risk management are necessities. I commend NYSERDA for taking action and for helping to develop insurance policies AND the technology to insure against climate change risks.
State Senator Neil Breslin said“The Innovation for Climate-Technology Solutions program administered by NYSERDA will help New York State address potential future financial risks resulting from climate change. It is critical to our economic stability that we find innovative solutions to enable businesses to better manage risks, and prepare for the negative impacts that climate change could have on them.
Assemblyman Michael Cusick said: “As our state strives to meet the energy efficiency and climate goals set by the CLCPA, we must continue to find inventive ways to mitigate liability along the way. Financial support for innovation in insurance industry will help stakeholders better manage risk, and this program will go a long way to adopting products and policies that will lead our state toward clean and efficient technology.”
Assemblyman Kevin Cahill said: “The effects of climate change, including increased instances of severe weather events, flooding and heat, require a significant reassessment of the risk models used by insurers to determine the cost of coverage. The significant contribution of NYSERDA in this process will remove significant financial burden and establish a new benchmark for providers to use. This should reduce premiums for many P&C insurance policies and help New York State meet its emissions targets set out in our groundbreaking Climate Leadership and Community Protection Act. I thank Adrianne Harris, Superintendent of the Department of Financial Services, the NYSERDA Board of Directors, and Governor Kathy Hochul for joining the Legislature in ensuring that significant climate issues are fully recognized by the insurance industry.”
This program is supported by NYSERDA’s New Business Models and Offerings Initiative, which promotes new business models, commercial service or product offerings, and tools that enable the scaling of climate solutions through the acquiring customers or increasing capital flows. This program works with NYSERDA’s innovation and entrepreneurial support programs to advance innovative technologies to market. Since 2009, the state has invested more than $28 million through NYSERDA’s entrepreneurship support programs, supporting nearly 374 businesses and generating more than 1,700 jobs. More than $1.8 billion in private investment and $200 million in project finance capital has been raised while helping to bring more than 589 new and improved clean energy products to market, including LEDs, household appliances, longer lasting batteries and more efficient heating. and-cooling systems.
Funding for this initiative is provided by the state’s 10-year, $5.3 billion Clean Energy Fund. More information about this funding is available on NYSERDA’s website.
New York State National Climate Plan
New York State’s premier climate program is the nation’s most aggressive climate and clean energy initiative, calling for an orderly and just transition to clean energy that creates jobs and continues to drive a healthy economy. green as New York State recovers from the COVID-19 pandemic. Enshrined in law by the Climate Leadership and Community Protection Act, New York is on track to achieve its mandated goal of a zero-emission electricity sector by 2040, including 70% power generation renewable energy by 2030, and achieve economy-wide carbon neutrality. It builds on New York’s unprecedented investments to expand clean energy, including more than $35 billion in 120 large-scale renewable energy and transmission projects across the state, $6.8 billion in dollars to reduce emissions from buildings, $1.8 billion to expand solar power, more than $1 billion for clean transportation initiatives, and more than $1.6 billion in NY Green Bank commitments . Together, these investments support nearly 158,000 jobs in New York’s clean energy sector in 2020, 2,100% growth in the distributed solar sector since 2011, and a commitment to develop 9,000 megawatts of offshore wind power from ‘by 2035. Under the Climate Act, New York will build on this progress and reduce greenhouse gas emissions by 85 percent below 1990 levels by 2050, while ensuring that that at least 35%, with a target of 40%, of the benefits of clean energy investments be directed to disadvantaged communities, and advancing progress towards the State 2025 energy efficiency target of reducing consumption onsite energy savings of 185 trillion BTUs in end-use energy savings.
