Kevin Rudd, former Prime Minister of Australia, right, was asked about the top global geopolitical risks and adaptation was one of five mentioned in discussions at the World Economic Forum Global Agenda Summit 2012 in Dubai, UAE.
“Recent studies indicate that climate change is taking place faster than originally thought. Climate change poses both immediate and long-term threats to the life-support systems upon which all people depend – food, water, habitat, health, ecosystem services and critical infrastructure such as energy, transport and coastal protection. Meanwhile, market opportunities for “green” technologies are growing, such as renewable and efficient energy that help to mitigate greenhouse gas emissions, as their costs come down and they offer attractive investment possibilities.”
World Economic Forum Global Agenda Council on Climate Change
Frank Nutter, Reinsurance Association of America (RAA) President, has held his role at RAA since 1991. He currently serves on the Board of the International Hurricane Research Center; the Advisory Board of the Center for Health and the Global Environment, and adjunct to the Harvard University Medical School; the Council of the American Meteorological Society; and the Board of the University Center for Atmospheric Research sponsored by the National Science Foundation. He currently serves on the Advisory Board of the OECD’s International Network for the Financial Management of Large Scale Disasters and has served on the Board of the Bermuda Institute for Ocean Sciences.
Global Adaptation Institute (GAIN): Tell us about the Reinsurance Association of America (RAA).
Frank Nutter, Reinsurance Association of America President: The Reinsurance Association of America represents reinsurance companies that conduct business in the United States. Reinsurance companies insure insurance companies. They don’t deal with consumers at all, but they really become part of the capital financing mechanism for the industry. And, one major segment of what the industry does is provide financial support for insurance companies for natural catastrophe – earthquakes, hurricanes, tornados, large events that have multi-billion dollar consequences for consumers.
It is fairly common that 50 to 60 percent of those losses by insurance companies have probably been insured by reinsurance companies. So, if you take Hurricane Katrina for example, something like 60 percent of the losses that the insurance industry paid were ultimately born by reinsurance companies.
Karl Schultz is co-founder of the Higher Ground Foundation, a not-for-profit company dedicated to creating a market for climate adaption investment in developing countries. Higher Ground Foundation’s vision is a voluntary market for climate adaption projects, where projects earn climate vulnerability reduction ‘credits’ that can be bought and sold, similar to the voluntary carbon market’s verified emission reductions (VERs). The concept is attracting global interest, with a number of partnerships forming with development agencies, NGOs, scientific bodies and private companies. Schultz has started several businesses, including Climate Mitigation Works and Energy Edge, and co-founded Green Gas International, a clean energy technology and investment company now with over 450 employees around the world. Prior to that, he managed domestic and international climate programs at the U.S. Environmental Protection Agency.
Submitted by: Higher Ground Foundation
The Need for Adaptation Investment in Developing Countries
Climate adaptation finance is critical for many reasons. While everyone will be impacted by climate change, it will be the poor in developing countries most vulnerable to changes. With a lack of financial and technical resources, they will struggle to protect themselves from a growing number of threats, including more frequent and intense storms, droughts, sea level rise and the migration of vector-borne diseases. The estimated costs of adaptation extend to hundreds of billions per year. As a result, the international community has set a target of US$100 billion annually to fund both mitigation and adaptation.
The Global Adaptation Institute (GAIN) is featuring a five-part series on GAIN.org dissecting the United Nation’s Private Sector Initiative, as well as zooming-in on private sector best practices in adaptation. Read other articles to learn more about water, food & agriculture, coastal protection and energy companies who have found business opportunities in building global resilience, HERE.
India grows approximately 130 million tons of rice across approximately 108 million acres annually.
PepsiCo, India’s largest food and beverage company, understands the importance of agriculture and safeguarding crops. Several challenges can effect a farmer’s yield as well as the demand for that crop including climate change, urbanization, population shifts, natural resource supply levels and more. Shifting weather and rain patterns can also put a strain on crops, which leads directly to the supply chains of companies working and living in the area.
The Global Adaptation Institute (GAIN) is featuring a five-part series on GAIN.org dissecting the United Nation’s Private Sector Initiative, as well as zooming-in on private sector best practices in adaptation. Read other articles to learn more about water, food & agriculture, coastal protection and energy companies who have found business opportunities in building global resilience, HERE.
Unilever, a U.N. Private Sector Initiative member and a global corporation specializing in nutrition, hygiene and personal care, commits to sustainable business and protecting the environment. Adaptation best practices have been incorporated into the company’s development plan including investing in emerging market areas. Unilever is one company that understands the need to adapt to global challenges such as population shifts, urbanization and climate change along with securing access to clean water for the world.
