Governor Hochul Announces $6.5M to Support Insurance Innovations 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 to promote clean technology adoption across New York State. The program will fund products that manage financial risks associated with climate change, supporting the state’s leading Climate Leadership and Community Protection Act goal of reducing carbon emissions by 85 percent by 2050.

“New York State has left no stone unturned in our fight against climate change, which includes investing in industries that develop and advance clean, green technologies,” Governor Hocher said. “By promoting innovative policies that will create more sustainable climate technologies, we are taking bold action to address the challenge of climate change. My administration remains focused on supporting key initiatives that will benefit businesses and consumers, while serving our nation Leading countries contribute to climate efforts.”

The New York State Energy Research and Development Authority (NYSERDA) will select a program administrator to develop this new program, manage operations, leverage industry expertise and facilitate research and development to create new risk models. Project managers will also select innovative insurance concepts, products and services, such as insurance for residential and commercial renewable energy projects, to develop new business models to enable future climate technology solutions. Program administrators will be awarded up to $1.5 million for working with Underwriters-General (MGUs) and General Agents (MGAs) who can research, develop and test new insurance products, and will be awarded up to $5 million in competitive grants models, which are expected to be announced in 2023.

Doreen M. Harris, President and CEO of the New York State Energy Research and Development Authority, said, “Addressing the financial risks posed by climate change by researching, developing and advancing insurance innovations in clean, efficient technologies is a win-win for New York’s businesses and consumers. The availability of this important R&D funding will ultimately support new business models that seek to overcome barriers to bringing new products to market and build on Governor Hochul’s holistic approach to a carbon-neutral economy by mid-century.”

NYSERDA will accept applications from eligible organizations until October 12, 2022, and select program administrators through a competitive process. Applicants should demonstrate their financial interests and implementation in New York State. A scoring committee will evaluate all proposals based on published criteria. Each applicant must demonstrate how they can contribute to the research and development required to bring new insurance products and services to market to meet New York State’s climate and clean energy goals. This includes soliciting new insurance ideas, managing the development and growth of projects, and de-risking climate technology solutions and services.

State Senator Kevin Parker said, “While many people may not realize the cost of climate change, the occurrence and exacerbation of floods, droughts, wildfires and hurricanes cost our nation trillions of dollars. When Hurricane Sandy hit New York, it cost an estimated $8 billion The damage caused by man-made sea level rise in the U.S. dollar. The costs of climate change are further exacerbated by a lack of adequate preparation for extreme weather patterns that are now becoming more common than rare. Investments like this – NYSERDA to management Invested $6.5 million “Climate-related financial risk is a necessity. I applaud NYSERDA for taking action and helping to develop insurance policies and technologies to ensure that climate change risks are addressed. ”

State Senator Neil Breslin said“The Climate Technology Solutions Innovation Program, administered by NYSERDA, will help New York State address potential future financial risks posed by climate change. Our finding of innovative solutions to enable businesses to better manage risk is critical to our economic stability. It is important to prepare for the negative impacts that climate change could have on them.”

Assemblyman Michael Cusk said, “As our state works to meet the energy efficiency and climate goals set by the CLCPA, we must continue to find creative ways to mitigate liability. Funding innovation in insurance will help stakeholders better manage risk, and the program will continue in There is still a long way to go in adopting products and policies that will lead to the adoption of clean and efficient technologies in our country.”

MP Kevin Cahill said, “The impacts of climate change, including an increase in severe weather events, floods and heat events, will require a major reassessment of the risk models used by insurers to determine insurance costs. NYSERDA’s significant contribution to this process will remove a considerable cost burden And establish a benchmark for new providers to use. This should lower premiums for many property and casualty policies and help New York State meet the emissions goals set out in our groundbreaking Climate Leadership and Community Protection Act. I thank the Director of Financial Services Adriana Harris, I would like to thank the NYSERDA Board of Directors and Governor Kathy Hochul for joining the Legislature to ensure that important climate issues are fully recognized by the insurance industry.”

The program is supported by NYSERDA’s Novel Business Models and Products program, which promotes new business models, commercial service or product offerings, and tools to expand climate solutions by acquiring customers or increasing capital flows. The program partners with NYSERDA’s Innovation and Entrepreneurship Support Program to bring innovative technologies to market. Since 2009, New York State has invested more than $28 million through NYSERDA’s Entrepreneurial Support Program, supporting nearly 374 companies and creating more than 1,700 jobs. Has generated more than $1.8 billion in private investment and $200 million in project financing while helping bring more than 589 new and improved clean energy products to market, including LED lighting systems, home appliances, longer-lasting batteries and More efficient heating- and cooling systems.

Funding for the program comes from New York State’s 10-year, $5.3 billion Clean Energy Fund. For more information on this funding, visit NYSERDA’s website.

New York State’s State-Leading Climate Program
New York State’s Leading Climate Agenda, the most aggressive climate and clean energy initiative in the country, calls for an orderly and just transition to clean energy, creating jobs and continuing to nurture green as New York State recovers from COVID-19 Economic Pandemic. New York, enshrined in law through the Climate Leadership and Community Protection Act, is working toward its statutory goal of achieving a zero-emissions power sector by 2040, including 70% renewable energy generation by 2030, and an economy-wide Carbon neutral. It builds on New York’s unprecedented clean energy investment, including more than $35 billion for 120 large-scale renewable energy and transmission projects across the state, $6.8 billion to reduce building emissions, and $1.8 billion to expand solar , more than $1 billion in clean energy transportation initiatives, and more than $1.6 billion in New York Green Bank commitments. Combined, these investments will support nearly 158,000 jobs in New York’s clean energy industry in 2020, a distributed solar industry that has grown 2,100 percent since 2011, and a commitment to develop 9,000 megawatts of offshore wind by 2035. Under the Climate Act, New York will build on this progress by reducing greenhouse gas emissions by 85% from 1990 levels by 2050, while ensuring that at least 35% (with a goal of 40% of clean energy investment returns) go to vulnerable communities, and drive toward the national 2025 energy efficiency goal of reducing on-site energy consumption or end-use energy savings by 185 trillion BTUs.

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