A new report from leading insurance group RSA and WWF’s argues that a 100% renewable energy future by 2050 is both technically achievable and cost effective.

However the report says that greater cooperation between Government, business and insurers is needed to overcome significant barriers including access to finance and planning.

‘Insurance and Renewable Energy’ examines the potential of wind, solar, bio and hydro energy to contribute to the global energy mix by 2050, outlining the main insured risks and environmental issues associated with each technology.

Drawing on the experience of countries such as Brazil, which relies on hydropower for 80% of its energy, the briefing looks ahead to the future of energy in the UK and Europe and argues that while the barriers are challenging, they can be solved.

With production from global oil and gas reserves predicted to fall by 40-60% by 2030, urgent action to secure renewable energy sources for the future is increasingly needed.

Speaking about the report, Nick Mohlo, Head of Energy Policy at WWF-UK said

“Renewable energy can undoubtedly provide an overwhelming proportion of our global energy needs but it also makes sense for a number of economic and environmental reasons.”

The insurance industry plays a vital role in supporting the development of renewable energy technology – from construction through to the operational life of a renewable facility. The skill and experience of insurers will be crucial to ensure that new and emerging risks are effectively managed and manufacturers are supported if they are to develop the next generation of renewable energy.

Mark Potter, RSA Head of Renewable Energy, commented:

"Typically the technology involved is relatively new or still at the prototype stage, which makes the assessment of risk difficult. As the industry matures, we hope to see greater standardisation of plant equipment bringing benefits in terms of increased reliability and a reduction in repair time and costs. It is expected that the current levels of growth will continue and accelerate over the coming years and this is one reason why the sector is so important to RSA.”

The report is part of a series of briefings to raise awareness of emerging environmental risks and promote solutions. Download the full briefing here.