News

UNEP FI Highlights Insurance Industry’s Role in Adaptation, Mitigation

UN Environment Programme Finance Initiative (UNEP FI) 10 December 2008: At a side event held during the 14th session of the Conference of the Parties of the UNFCCC, in Poznan, Poland, members of the UN Environment Programme Finance Initiative (UNEP FI) discussed the role of insurers in developing innovative products to respond to the increasing number of weather-related disasters, to insure forests, and to smooth out uncertainties in renewable energy.

Participants noted that, if reduced emissions from deforestation and

forest degradation (REDD) becomes a part of a future climate deal, the

insurance industry could be key in resolving the risks of forests being

damaged. Speaking on the future of insuring REDD, Paul Clement-Hunt,

Head of UNEP FI, noted the need for “hybrid, public-private insurance

solutions to kick-start the forest carbon market.”

UNEP FI

reported that it is currently working with a consortium of insurance

companies, including MunichRe, RSA Insurance Group, and CarbonRe, to

develop a Global Renewable Energy Insurance Facility. The Facility,

which is expected to be launched next month, aims to bring a wider

range of innovative insurance and risk management products to assist

the growth of renewables and clean energy in developing economies. [UNEP Press Release] [Side event website]