Munich Re’s CEO Nikolaus von Bomhard issued a statement on the reinsurer’s web site that left no doubt concerning the disappointment he (and the Group) feel following the failure of the UN’s Copenhagen Climate Conference to achieve any major agreement.
“The outcome of Copenhagen has left me somewhat stunned,” von Bomhard wrote. “The 2°C [3.6°F] goal agreed with China and India at the G8 summit in summer of this year was merely recognized in Copenhagen, with no pledges made. The major industrial countries, along with China and India, have thus retreated behind the lines already established.”
He pointed out that Munich Re has been looking closely “at a multitude of risks and how to handle them best. Climate change is such a risk, and the need for action is obvious. I therefore find it baffling that so little was achieved during the negotiations in Copenhagen.
“Climate change is a fact, and it is almost entirely made by man,” he stated in no uncertain terms. “It is jointly responsible for the rise in severe weather-related natural disasters, since the weather machine is ‘running in top gear.’ The figures speak for themselves: according to data gathered by Munich Re [whose scientists have been studying it for over 20 years], weather-related natural catastrophes have produced US$ 1,600 billion [$1.6 trillion] in total losses since 1980, and climate change is definitely a significant contributing factor.
“We assume that the annual loss amount attributable to climate change is already in the low double-digit billion euro range. And the figure is bound to rise dramatically in future,” he added.
Von Bomhard called for “leadership.” He stressed that it’s now “up to the USA, Europe, including Germany, and China to cut the Gordian knot. Progress is likely to be made more easily on a small scale rather than at a climate summit with 193 negotiating partners and thousands of participants. In the light of the Copenhagen experience, I would therefore advocate a rapid resumption of talks with a small party of participants to get the negotiations moving again.”
As the head of the world’s biggest reinsurer, and one of Germany’s largest primary carriers, von Bomhard can’t ignore the stark reality of climate change, and what it portends for global the insurance industry. “We need a strict climate agreement, and we need it fast,” he continued. “Climate change is a global problem and a challenge for humankind. If the players do nothing but pursue their national interests, we are headed for a climate catastrophe.”
He has confidence, however, that industry will “move ahead now and actively develop solutions to curb climate change and prevent its consequences. After all, such solutions make economic sense.”
He singled out the example of the Desertec Industrial Initiative, a huge desert-power project. “We at Munich Re will make every effort together with our partners to rapidly turn this vision into reality, von Bomhard stated. “In the long run, however, the economy will need a global agreement to prevent a distortion in competitive conditions and relocation of high-carbon production processes and jobs into countries without any regulation mechanisms.”
Source: Munich Re – www.munichre.com
Topics China Climate Change
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