Carbon Caps Through the Backdoor

WSJ discusses the role of NAIC (National Association of Insurance Commissioners) - insurance regulators from 50 states - in development and enforcement of climate change-related disclosure norms. It is somewhat ideological in its take. The states have legitimate interest in climate change impacts and its cost (often paid through insurance companies). It is not very different from actions by any number of interest groups - many of them much more odious than this.

Carbon Caps Through the Backdoor

Since the beginning of the climate debate, environmental lobbies such as Ceres (a coalition of activists and investors that pressures companies to go green) have expressed particular interest in insurers. Rather than nitpick every company to adopt climate-change policies, these organizations realized it would be more efficient to target a gatekeeper. Everybody needs insurance. If insurers could be bludgeoned into requiring policyholders adopt carbon-mitigation practices as a requirement for insurance, the activists would have imposed their will widely and quickly.