Building a sustainable economy isn’t just about generating cleaner energy, it’s about managing the risks that come with it. With renewables now accounting for 42% of the UK’s energy mix, we’re making real progress. Yet many parts of the renewables sector still struggle with one vital issue: insurance.
Despite the momentum, parts of the renewables industry still face a lack of available insurance. The sector has been slow to adapt, sticking to what it knows, and in doing so is making investment riskier and holding back well-run viable facilities. Our own rapid growth here at Aspect reflects the size of this gap in the market.
Lithium batteries are a good example of this. These are central to the green economy, powering EVs and storing renewable energy, but they’re also tough to recycle, and even more challenging to insure. The shocking rise of single-use vapes makes this evident, with over 360 million being sold annually in the UK and before the ban, more than eight million were being discarded every single week. Safe recycling is essential here, yet many insurers still exclude lithium batteries from coverage.
Why? Because lithium batteries represent a complex, evolving risk. Most are currently of the LMC variety, which is more flammable, but we’re already seeing a shift towards safer LFP batteries and it’s likely that sodium-ion batteries, which are non-flammable, will take over down the line.
What matters is that the transition itself doesn’t go uninsured. Each new solution will bring its own risks, and we need underwriting that evolves with them. Too often, underwriting falls back on a rigid ‘computer says no’ approach. But from our work with recyclers across the UK, including those dealing with lithium batteries in mixed waste streams, we know there’s a more dynamic approach. These risks can be understood and they can be underwritten.
The insurance industry has a choice: wait on the sidelines, or give sustainable energy providers the risk management advice they need to invest with confidence in a low-carbon future.
Read the full article published in Materials Recycling World (MRW), the leading business publication for the recycling and waste management industry, here:
https://www.mrw.co.uk/analysis-and-markets/insurers-must-do-more-for-sustainability-27-07-2025/