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Incentive for Norwegian Hull Club’s oil & gas clients

Norwegian Hull Club has said that it is further reinforcing its commitment to the energy transition by introducing Environmental Care & Emission Reduction (ECER) – a new area of assessment in its underwriting procedures.

ECER will see environmental standards, emission reduction and energy efficiency all forming part of The Club’s underwriting guidelines and rating model for Oil & Gas clients from 2023. ECER will involve an assessment by The Club of measures taken by the Assured / prospective Assured  to reduce emissions and increase energy efficiency.

To best enable such an evaluation, a partnership with Esgian – Greenpact Rigs – data suppliers to the offshore rig industry – has been established.

The Club will offer an ECER allowance based on estimated CO2e and NOx reductions due to installed emission reducing and energy efficiency systems. The use of Selective Catalytic Reduction Systems (SCRs) and Closed Bus Tie Systems, for example, may qualify a rig for an ECER rate reduction. Similarly, through its ECER assessment and allowance, Norwegian Hull Club will also encourage clients to install enclosed flare systems and waste-heat recovery solutions on their platforms.

Hans Christian Seim, CEO of Norwegian Hull Club, said that “incentives can encourage change and introducing the Environmental Care & Emission Reduction assessment and allowance is an important, committing, and concrete step in the Club’s contribution to encourage progress towards zero emissions by 2050.”

He said that Norwegian Hull Club believed that the overall insurance premium in the offshore Oil & Gas market was insufficient to cover the volatility in the industry. Seim said that “it is certainly not the case that we intend to reduce this further for the segment. However, as a global marine and offshore energy insurance provider with a forward-leaning sustainability focus, we remain committed to developing innovative services and products for our valued Oil & Gas clients”.

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