Expand risk sharing to tackle climate emergency – CISL

Sustainability experts are urging policymakers, regulators and industry to expand risk sharing systems to tackle the climate emergency. If applied, it will enable a radical global transformation to protect lives and livelihoods, now and in the decades ahead, according to academics at the University of Cambridge Institute for Sustainability Leadership.

Its paper, launched at COP26 in Glasgow, proposes twenty concrete steps to urgently govern, manage and reduce climate risks for a just, resilient transition to net zero in developing and developed countries.

Bronwyn Claire, senior programme manager for insurance group, ClimateWise, said: “Traditionally expertise in risk sharing has sat with the insurance industry. Through our collaborative insights and desire to accelerate the transition to net zero, ClimateWise has seen how the expansion of these skills and understanding into a much wider group of economic and policy decisionmakers is vital in the race to tackle climate change.

“COP26 leaders gathered in Glasgow have the opportunity to recognise the importance of risk sharing to support the transition to a resilient, net zero economic and finance system. Robust disaster risk recovery and net zero aligned economy and society depends on the framework of the financial system reflecting the impact and future implications of climate risk.”

In his foreword to the report, Mark Carney, UN Special Envoy on Climate Action and Finance said: "In the face of the unfolding climate emergency, this report provides a timely and valuable overview of the lessons we can already draw from the global insurance system – across public, private and mutual sectors – and the opportunities for that system to help increase our systemic resilience to the worst effects of climate change.

“The global financial system is leading the way in the run up to COP26. This collaboration between senior regulators, policymakers and industry extends that leadership by informing a pathway beyond Glasgow that aims to secure a smoother and more equitable transition to a resilient, zero-carbon future.”

CISL's paper can be read here: https://www.cisl.cam.ac.uk/files/risk_sharing_in_the_climate_emergency.pdf

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