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 research and development of new insurance policies and products that will promote the adoption of clean technology statewide. from New York. 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 goal of reducing carbon emissions by 85 percent by 2050.

“New York State leaves no stone unturned in our fight against climate change, and that includes investing in industries that will develop and promote green and clean technologies.” Governor Hochul said. “By advancing innovative policies that will create more sustainable climate technology, we are taking bold steps to meet the challenges of climate change. My administration remains focused on supporting key initiatives that will benefit both businesses and consumers while helping make our state leader in the nation 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 risk models. 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 Administrative General Underwriters (MGUs) and Administrative General Agents (MGAs) who can research, develop, and test new insurance products, and will award up to $5 million in competitive grants that are anticipated to are announced in 2023.

New York State Energy Research and Development Authority President and CEO Doreen M. Harris said: “Addressing the financial risks of climate change through the research, development and advancement of insurance innovation for clean and efficient technologies is beneficial to both New York businesses and consumers. The availability of this important financing for research and development 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 mid-century.”

NYSERDA will accept applications from qualified organizations through 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 based on published criteria. Each applicant must show how it can promote the research and development necessary 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 de-risking climate technology solutions and services.

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State Senator Kevin Parker said: “Although many may not realize the price of climate change, the occurrence of floods, droughts, wildfires and hurricanes, which are amplified by it, cost our country trillions of dollars. When Hurricane Sandy hit New York , approximately $8 billion of the damage was due to human-caused sea level rise.The cost of climate change is further compounded by a lack of adequate preparation for extreme weather patterns that have now become more common than rare. Investments like this: NYSERDA’s $6.5 million in managing the financial risks associated with climate needs. I commend NYSERDA for taking action and helping develop insurance policies AND the technology to protect against the risk of change. climate”.

State Senator Neil Breslin said“The Innovation Program for Climate Technology Solutions 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 that allow businesses to better manage risk.” , and prepare for the negative impacts that climate change may have on them.”

Assemblyman Michael Cusick said: “As our state works to achieve the climate and energy efficiency goals set by the CLCPA, we must continue to find inventive ways to mitigate liability along the way. Financial support for insurance innovation will help stakeholders better manage the risk, and this is a long way to assume products and policies that lead our State to clean and effective technologies”.

Assemblyman Kevin Cahill said: “The effects of climate change, including increased instances of severe weather events, flooding, and heat, require a significant reevaluation of the risk models used by insurers to determine the cost of coverage. NYSERDA’s important contribution to this process will remove a significant cost burden and set a new benchmark for providers to use This should lower premiums on many property and casualty policies and help New York State meet its emission goals set out in our groundbreaking Law of Climate Leadership and Community Protection. I thank the Superintendent of the Department of Financial Services, Adrianne Harris, the NYSERDA board, and Governor Kathy Hochul for joining the Legislature in ensuring that the insurance industry fully recognizes important climate issues.”

This program is supported by NYSERDA’s Novel Business Model and Offering Initiative, which promotes new business models, business services or product offerings, and tools that enable scaling climate solutions through customer acquisition or increased sales. capital flows. This program works in conjunction with NYSERDA’s innovation and business support programs to drive innovative technologies to market. Since 2009, the State has invested more than $28 million through NYSERDA’s business support programs, supporting nearly 374 businesses and creating more than 1,700 jobs. Created more than $1.8 billion in private investment and $200 million in project financing capital while helping bring more than 589 new and improved clean energy products to market, including LED lighting systems, appliances, batteries longer lasting and more efficient heating systems. and cooling systems.

Funding for this initiative is provided through the $5.3 billion 10-year State Clean Power Fund. More information about this funding is available on the NYSERDA website.

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New York State’s Nation-Leading Climate Plan
New York State’s country-leading climate agenda is the most aggressive clean energy and climate initiative in the country, calling for an orderly and just transition to clean energy that creates jobs and continues to foster a green economy as the state of New York recovering from the COVID-19 pandemic. Enshrined in law through the Climate Leadership and Community Protection Act, New York is on track to achieve its mandated goal of a zero-emissions electricity sector by 2040, which includes 70 percent renewable power generation by 2030. , and to achieve carbon neutrality throughout the economy. It builds on New York’s unprecedented investments to increase clean energy, including more than $35 billion in 120 large-scale transmission and renewable projects statewide, $6.8 billion to reduce emissions from buildings, $1.8 billion million to expand solar power, more than $1 billion for clean energy transportation initiatives, and more than $1.6 billion in NY Green Bank commitments. Combined, these investments will support nearly 158,000 jobs in New York’s clean energy sector by 2020, a 2,100% growth in the distributed solar sector since 2011, and a commitment to develop 9,000 megawatts of offshore wind power by 2035. According to the Act Policy, New York will build on this progress and reduce greenhouse gas emissions by 85 percent from 1990 levels by 2050, while ensuring that at least 35 percent with a goal of 40 percent of the benefits of clean energy investments go to disadvantaged communities, and advance progress toward the state’s goal. 2025 energy efficiency goal of reducing on-site energy consumption by 185 billion BTUs of end-use energy savings.

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