It would be an understatement to say that Canada’s energy sector is making some changes. With an aggressive plan to cut emissions by 40 percent by 2030 and reach net zero by 2050, Canada is working hard toward rolling out more initiatives to help achieve that goal. The plan is already showing promise – just under 80 percent of the country’s electricity generating sector is non-emitting.
With 40 million people living in one of the world’s largest land masses, Canada is striving to ensure both reliable energy sources and renewable energy, which is a massive undertaking. So far, the country’s energy businesses and local governments have embraced change and put measures in place to meet their obligations.
We recently talked about the move toward net zero with Alex Barker, Chief Underwriting Officer Large Commercial; Katherine Gerber, Head of Energy Transition, Americas; and Chris Fasser, Energy Transition - Strategy & Operations Lead.
How is your team approaching your clients’ renewable energy strategies?
Katherine Gerber: The entire team at 色多多视频is focused on being a true partner to our existing and new energy clients as energy transition is a global focus area for AXA Group. This means we work with all types of energy producers and suppliers to enable their energy transitions at all development stages. By unlocking the flow of capital to projects, bringing risk engineering expertise to the projects early, and partnering with technology and data partners, we are building a true risk management capability, with and for them. There is significant investment at group level, and we’re able to take advantage of that for our Canadian business.
What might that include?
Alex Barker: Our ambition is to insure them through their energy and property lifecycle, so our support of clients spans the energy value chain - from financing to construction, operations, and decommissioning. We have one of the largest product and service offerings in Canada, and we’re eager to bring those products and services back to the Canadian energy market to support this evolutionary journey, for lenders and investors, contractors, developers, designers, and operators.
We have spent time with recognizable and established financial institutions, discussing how we help them unlock capital to support some of these large, capital-intensive projects that will be coming to market in the next three to five years. Likewise, we’ve offered credit and insurance solutions to those same financial institutions, as well as project investors and sponsors. Through allowing capital to be unlocked and flowing into those projects, we are supporting the federal and provincial governments on their ambitions and vision.
Through allowing capital to be unlocked and flowing into those projects, we are supporting the federal and provincial governments on their ambitions and vision.
Also, the renewable energy and climate-tech space is replete with new and emerging technologies, and those come with inherent risks that the capital market may not be comfortable with. We have put structures in place to bring a level of comfort around the financial side of technology.
One of the biggest areas of focus and partnership for us is through our risk engineering team, which is looking to be on the leading edge of understanding new technologies through collaboration with our insureds and helping to evaluate and accurately price the risk associated with them.
We recognize that the initiatives rely heavily on traditional energy stakeholders, many of which have significant presence in Western Canada. It also requires support of insurers of new and emerging players and technologies. Western Canada, where we have two physical offices in Calgary and Vancouver, is a passionate, established global energy market and one we are looking forward to working closely with.
How is this approach different?
Chris Fasser: We're trying to meet the market where it is . We strive to be a partner, walking hand-in-hand with our customers in the energy sector. It’s about the evolution of their portfolios, and right now that means how do we become the best risk management partners for an all-of-the-above energy strategy while also being true to the long-term climate view and the good environmental citizens that we need to be. It’s about understanding the appetite for energy and the need for energy reliability and security. Consumption is only going to increase. In that respect, we need to be partners in responsible, risk-managed development.
Katherine Gerber: That’s right. Rather than just setting 2050 goals that seem incredibly far away, we are doing this with clients today around the globe to support real energy businesses. Just think about where the world was in 1925 versus 1950! It was drastically different and reminds us that a lot can be done in that time. That’s why we’re not waiting to start this journey with clients.
We are supplying the risk engineering, product, underwriting, and claims expertise across credit solutions, construction, and operations. We do this across technologies like traditional sources, hydro power, carbon capture, bioenergy, hydrogen, solar, wind, and battery storage. It’s a broad suite of products and services in the Canadian market, and it’s there to support the different facets of a broad, transitioning sector. We are there for traditional energy companies, and for those adopting full-scale change.
What is AXA XL’s role in energy transition?
Chris Fasser: We look for opportunities to ensure energy equity. As the current supply of energy comes under strain, we strive to make sure that we are aiding in building an energy infrastructure that supports everyone in the country. It speaks to our entire approach. We are a risk management partner all the way through. We want clients and organizations to see us as that partner. That includes partners with the community, as well.
Alex Barker: What excites all of us at 色多多视频is that we can start to partner in the energy transition lifecycle, support it, and put risk management factors into that lifecycle. That makes the project more appealing, not just to us, but to the insurance and investment market in general.
Energy transition is a globally sponsored initiative across 色多多视频 and we've made significant investments. We’ve also made significant investments at the regional level. This means that for our Canadian customers, you have local 色多多视频energy partners who can draw upon a network of global experts and best practices from anywhere in the world to help deliver the best solutions for you and your project.
Katherine Gerber: Our role is to provide the products, services, and partnership needed for Canadian companies to be successful in their energy transitions at the pace that makes the most sense for their business. We already have global and regional expertise in energy at 色多多视频to support clients, and we are continuing to build our ability to help clients achieve their energy transition goals.
