A concerted effort to tackle greenhouse gas emissions

Gareth Stokes, FAnews Online Editor

The world is getting serious about climate change. The 17th Conference of the Parties (COP17) to the United Framework on Climate Change – and the 7th Session of Parties (CMP7) to the Kyoto Protocol – was hosted in Durban, South Africa from 18 November to

Scientists are concerned that high levels of carbon and other chemicals in the atmosphere – coupled with Ozone depletion – will create all manner of untoward weather patterns. In coming years we will have to get used to extreme rainfall patterns, colder winters and more severe storms to name a few. There are those who suggest the massive flooding experienced in Australia (December 2010) is directly linked to climate change. Unfortunately, despite numerous multi-national gatherings, the world’s dominant powers are struggling to present a united front to reduce carbon emissions. It is difficult for heavily industrialised economies such as the US and China to offset carbon emissions due to the impact on their economies. The good news is that ordinary citizens and private companies are getting their acts together.

Getting the short-term insurance sector involved

The insurance sector can play a critical role in helping society to adapt to increasing climate risk. South Africa’s largest short-term insurer (Santam) hosted a side event to COP17 together with ClimateWise, the United Nations Environment Programme Finance Initiative (UNEP FI) and the National Business Initiative. The group has played an active role in facilitating the industry’s transition to active participation in climate discussions. Why are these discussions important?

“If there is no immediate and significant reduction in [carbon] emissions, the physical impacts of climate change will be too strong to adapt to,” said Paul Clements-Hunt, head of the UNEP FI. “It is expected that the climate will change no matter how successful governments and the international community are in reducing emissions.” Since the industrial revolution we have pumped so much muck into the atmosphere that much of the damage is irreversible… And that means adapting to climate change is as important as tackling emissions going forward.

Stakeholders in the short-term insurance industry will have to brace for significant changes in regional weather cycles. According to Clement-Hunt, climate change-related risks can be viewed in two categories. First, we can expect an increase in the frequency and severity of extreme weather events, such as floods, storms, hurricanes and droughts. I was caught up in one of these “freak” events when a massive storm ripped through Centurion recently… The storm water system couldn’t handle the volumes of rain water resulting in flash floods with plenty of consequent damage. Second, we will have to adapt to long-term changes such as a rise in sea levels, desertification and the disappearance of glaciers! When I travelled to Switzerland in 2008 the decimation of glaciers was plain to see (with a bit of help from the tour guides of course).

What can insurers do?

Remco Fischer, head of climate change at UNEP FI, presented key findings from a global survey which assesses how the insurance industry can support society to improve its resilience to the climate. “The ultimate question is how the insurance industry can work with governments and legislators, both at the national and international level, to enable quicker and more effective adaptation to climate change, particularly among the most vulnerable,” he said. A major finding of the survey was the need for collaborative risk management to mitigate the impact of climate change related disasters. “Risk management approaches, such as land-use management, ecosystem conservation and flood resilient improvement, score high in terms of both benefits and cost-effectiveness,” said Fischer. “This implies that there are factors which we can influence to improve overall resilience of society.”

A local study conducted by Santam, the CSIR, the University of Cape Town and the WWF demonstrates that the insurance industry can play a strong role in risk management. The study findings confirmed that “human-induced impacts on the ecological buffering or ‘bounce-back’ capacity of the system have an equal or greater impact on risk, as compared to future climate change predictions.” Dr Deon Nel, head of the WWF’s biodiversity unit who presented these findings at the event, explained: “The proactive management and restoration of ecological systems has the potential to offset most of the future increases in risk related to climatic changes. This is positive news for us as there are actions which we can already take, right here and right now, to improve our resilience in a changing risk landscape.”

Until governments get their ducks in a row it will be up to the private sector – and individuals – to do their bit to reduce emissions. Each and every one of us can play our part by recycling and reducing our dependence on motor vehicles and Eskom’s “dirty” electricity. Don’t make the mistake of thinking your efforts are wasted – because the world will be saved by the multiplier effect of your efforts combined with those of concerned citizens everywhere.

Editor’s thoughts: It is easy to dismiss climate concerns as the depraved ranting of scientists or non-government organisations. We ignore these statistics at our peril. The damage inflicted upon our planet over the past century cannot be undone overnight… But each and every one of us can – in our own small way – make a difference!