Financial Soultions can confirm that ClimateWise, an international insurance industry collective who count among their members prestigious firms such as Swiss Reinsurance Co., appealed to developed nations to lessen their carbon emissions by 40% in 2020 from 1990 levels to aid in averting a global warming crisis.
“The climate crisis poses a systemic risk to the global economy,” a group spokesman said recently in Cape Town, South Africa, at a UN Environment Program hosted conference on financing programs for environmental protection. We need “an ambitious, robust and equitable global deal that responds credibly to the scale and urgency of the crisis facing humanity today.”
Financial Soultions reports that the United Nations is hopeful of reaching an agreement on a new accord to combat climate change and cut greenhouse-gas emissions during its 10-day Copenhagen climate conference starting Dec. 7.
“We want to extend insurance to as broad a part of the population as possible,” a chief executive officer of Alliance Insurance Co. and chairperson of ClimateWise, announced during an interview in Cape Town. “Without adequate action being taken in Copenhagen, property in many more parts of the world could become uninsurable.”
South Africa’s Santam Ltd, is also a predominant member of ClimateWise
“The industry operates off annual contracts” and unacceptable risks will not be insured, the C.E.O continued, “Economically the insurance industry can manage the potential risks of climate change down the road. There is no question of the industry being in danger of collapsing as a result of climate change.”
UNEP and Standard Bank Group Ltd., Africa’s largest lender, recently released the news to Financial Soultions sources that they had jointly initiated a project aimed at developing Africa’s carbon market. The Africa Carbon Development Facility will make available targeted grants, technical assistance and training.
“Despite the explosive growth of the carbon market worldwide, Africa has not yet substantially benefited,” a UNEP statement said. “Its share of the UN-regulated carbon credit market has held steady at around 3 %. Even without any additional stimulus, the 112 projects currently in process would create 85 million carbon credits worth over $1.2 billion by 2012.”
