Climate Change Newsletter No 19

Climate Change session at ABI’ Biennial Conference: Today’s Challenges, Tomorrow’s Opportunities: taking action for success, 9 June 2009, London

ABI, supported by ClimateWise and Ordnance Survey, will host a climate change breakout session at ABI’s Biennial Conference. The session ‘Climate change and the current financial crisis’,  will be chaired by Andrew Torrance, Climatewise Chairman and CEO of Allianz UK. Confirmed panellists are:

• Francesca Short, Partner KPMG & Co-leader of the Global Insurance Group at KPMG
• Karina Litvack, Director of the Governance and SRI team at F&C Asset Management
• Simon Hughes MP, Liberal Democrat Shadow Secretary of State for Energy and Climate Change and Liberal Democrat Shadow Leader of the House of Commons
• David Kennedy, Chief Executive, Committee on Climate Change
• Professor Paul Ekins, King’s College London, Director of the UK Green Fiscal Commission

To register please visit http://www.abi.org.uk/

Future of flood risk management: ABI hosts Parliamentary reception and launch of research reports

On 28th April ABI hosted a Parliamentary reception on future flood risk management. The event was very well attended by MPs, key stakeholders and ABI members. The Flooding Minister and his Shadow counterpart both agreed on the importance and urgency of a new approach to preventing floods in this country. Our comments on the draft Flooding & Water Bill were well received and we will work with MPs throughout the legislative process to ensure that this remains a political priority. For more information please contact Swenja Surminski.

Our current position on the Bill is summarized in the policy paper “ABI Proposals for the Flood and Water Management Bill” - http://www.abi.org.uk/Members/circulars/viewAttachment.asp?EID=22777&DID=17677

At the event we also published the results of two ABI research projects:
“Resilient Reinstatement - The cost of flood reinstatement of domestic properties” - http://www.abi.org.uk/BookShop/ResearchReports/20090423%20RR%20Report14%20(2).pdf

“Urban surface water management planning - Implementation issues “ - http://www.abi.org.uk/BookShop/ResearchReports/20090423%20SWMP%20report13.pdf

Financial Risks of Climate Change Research Project launched
ABI has appointed cat modelling firm AIR and the Met Office to conduct research into the financial risks of climate change. This project follows on from the 2005 ‘Financial Risks’ project  (please see: http://www.abi.org.uk/Display/File/Child/552/Financial_Risks_of_Climate_Change.pdf)  and will specifically look at climate risks in the UK and China. For more information please contact Swenja Surminski or David O'Neill.
 

ABI/CII publish ‘Thinkpiece’ on how to promote climate adaptation in the UK:
The latest edition of Thinkpiece provides an overview of the insurance industry’s recent work promoting climate change adaptation . Swenja Surminski of the Association of British Insurers (ABI) explores efforts to improve understanding of current and future risks, protect homes, businesses and communities, and develop risk management solutions for climate risks and making the market work for adaptation.
http://www.cii.co.uk/downloaddata/TP18_Surminski_Adaptation_20May2009.pdf

Also in the Thinkpiece series:
Andrew Voysey: ClimateWise -  Challenging to do More, 15 April 2009
http://www.cii.co.uk/downloaddata/TP17_Voysey_ClimateWise_15Apr2009.pdf

ABI presents at ClimateWise's  "Climate Risk Research Sharing" event on 21st May
The ClimateWise event was held in collaboration with the Lighthill Risk Network and hosted by the CII. ABI’s Swenja Surminski presented on “Preventing and responding to flood risk: Surface water adaptation and resilient repairs”.  For presentations please visit:
http://www.lighthillrisknetwork.org/events/Bios/Presentations_Changing_Climate_Risk-Research_Sharing_event.html

Discussion with UK Climate Change Negotiators
ABI participated in a meeting between UK climate change negotiators and business representatives, hosted by the CBI’s International Climate Change Working Group. The meeting focused on business expectations in the run up to the UNFCCC negotiations in Copenhagen later this year. For more information please contact Swenja Surminski. Please also see CBI’s  publication: ‘Technology revolution’

Consultation on Adaptation in Scotland
The Scottish Government has launched “Preparing for a Changing Climate - Second Consultation to Inform Scotland's Climate Change Adaptation Framework” - www.scotland.gov.uk/adaptationconsultation

ABI attended the launch event in Edinburgh on 27th April.  ABI commented on the consultation: "Climate change and its impacts are of particular importance to the insurance industry in Scotland and the rest of the UK because we are one of a very few countries where the private sector fully protects people against the costs of flooding, a standard part of insurance cover.  Almost everywhere else in the world, that cost falls on the taxpayer. So adaptation is vital for our customers and us. The Association of British Insurers, as the voice of the insurance and investment industry, believes the predicted changes in the climate pose a threat to the economy and to our way of life. Taking action now will be more cost-effective than taking action later. Our own research shows that adaptation investment can be very cost effective: for example flood defence expenditure in the UK has a cost-benefit ratio of 7:1, much higher than for other public sector capital investments. We welcome the Scottish Government's efforts on adaptation and will continue to work with all stakeholders to make Scotland more resilient."
ABI will respond to the consultation, closing date is 20th July, please contact Swenja Surminski for more information.

Speaking Enagements
• ABI’s Director General Stephen Haddrill spoke at a Cambridge Sustainability Network (CSN) event on 16th April on the topic of a ‘low climate risk economy’ and on the role of the policy makers and business leaders in tackling climate change.
• The Local Government Association hosted its second Flooding Conference in London on 29th April. Stephen Haddrill gave a keynote speech on the draft Flooding Bill and what the insurance industry needs to see from the proposed legislation. ABI also hosted a workshop on “promoting adaptation and flood resilience”.
• ABI presented its Flooding Bill position to the Chartered Institution of Water and Environmental Management at CIWEM’s Central Southern Annual Seminar on Integrated Flood Risk Management on 15th May in Swindon.
• Stephen Haddrill hosted a roundtable discussion on global warming at the 4th annual Insurance Day Summit in London 19th May 2009.
• Swenja Surminski gave keynote address alongside environmental campaigner Tony Juniper at the 2degress online conference on “Understanding and Managing Climate Change Risk”, on Tuesday 12th May. For
• ABI gives evidence on adaptation to Royal Commission on Environmental Pollution: On 30th April, ABI’s Nick Starling and Swenja Surminski gave oral evidence to the RCEP’s inquiry into adaptation in the UK. The written response to the RCEP inquiry was submitted in October last year http://www.abi.org.uk/Document_Vault/RECP_full_inquiry__ABI_response_17101.pdf

 News

Launch of the UK Climate Projections (UKCP09) announced for 18th June 2009
ABI will attend the official launch. Later this summer, we will be hosting a seminar for ABI members to discuss the new climate data in the context of insurance with a special focus on flood risk. For more information please contact Swenja Surminski. 
For more information about UKCP 09 please visit: http://www.ukcip.org.uk/index.php?id=263&option=com_content&task=view

"The Copenhagen Call"
At the close of the World Business Summit on Climate Change in Copenhagen on 26th May global  business leaders have  issued "The Copenhagen Call". The statement was delivered to Danish Prime Minister Lars Løkke Rasmussen and UNFCCC chief Yvo de Boer to take forward into the final six months of negotiations leading to COP15. For more information: http://www.copenhagenclimatecouncil.com/get-informed/news/text-of-the-copenhagen-call.html

New joint Environment Agency and Met Office Flood Forecasting Centre for England and Wales opened
On 21st April, Secretary of State for Environment, Food and Rural Affairs, Hilary Benn MP opened the new Flood Forecasting Centre (FFC). The creation of the centre is in response to a key recommendation of Sir Michael Pitt's Review into the summer 2007 floods. The FFC combines the Environment Agency's expertise in flood risk management and the Met Office's expertise in weather forecasting for the first time.  The Centre has been created to forecast river and coastal flooding as well as extreme rainfall which may lead to flooding from surface water. It will help provide earlier warnings of floods to local authorities and the emergency services, to give them more time to prepare for floods and reduce the risk of loss of life and damage to property. ABI’s Stephen Haddrill attended the opening event.

Draft Flood and Water Management Bill published
The Government have published the draft Flood and Water Management Bill. The aims of the draft Bill are to:
• Reduce the likelihood and impacts of flooding;
• Improve our ability to manage the risk of flooding, by clarifying who is responsible for what;
• Give water companies better powers to conserve water during drought;
• Reduce red tape and other burdens on water and sewerage companies;
• Improve the overall efficiency and management of the industry; and
• Reduce pollution and improve water quality.
http://www.defra.gov.uk/environment/water/flooding/flow/index.htm
ABI will respond to the consultation. For more information please contact Swenja Surminski.

New information on natural disasters
Maplecroft have published a new  natural disasters series: US, China top economic losses from climate change related disasters. for more please visit:  http://maplecroft.com/Maplecroft_Natural_Disasters_2009.pdf
 
 
Sunday Times Article on climate change costs to insurers
 Sunday Times, March 22, 2009: Climate-change damage may double cost of insurance: Weather-related problems have been underestimated by scientist – for full article please visit:  http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article5949991.ece 
 

UK Government launches online forum  'Low Carbon Industrial Strategy Community'  at www.hmg.gov.uk/lowcarbon.
Following on from the 6 March Low Carbon Industrial Strategy summit this online forum aims at sparking debate and eliciting a response from the wider business community on how to achieve a low carbon economy in the UK. 
 
 
Ceres has published the annual report "From Risk to Opportunity 2008: Insurer Responses to Climate Change"
This report documents insurer activities spanning green products and services, financing and investments in climate-change solutions, climate research, disaster resilience, in-house energy and carbon management, climate-risk disclosure, and the public policy discussion on climate change.  The report chronicles ways in which insurers are embracing a more sophisticated approach to the issue, increasingly recognizing it as one of enterprise risk management, cutting across the domains of underwriting, asset management, and corporate governance.

Based on a review of hundreds of source documents, plus a direct survey of insurance companies, the report identifies 643 specific activities on the part of 244 insurance entities from 29 countries (as well as 34 non-insurer collaborators). This represents a 50% year-over-year increase in the level of activity compared to that observed through 2007. These entities collectively have $1.2 trillion in annual premiums (more than a quarter of the global total) and $13 trillion in assets, while employing 2.2 million people.  While a major segment of the global insurance industry is now engaged in the climate change discussion, most companies thus far have a very modest level of activity.
 
A copy of the report can be downloaded here: http://insurance.lbl.gov/opportunities/ro-08-summary.html

See also: http://www.nytimes.com/cwire/2009/04/03/03climatewire-industry-begins-to-move-on-climate-risks-but-10429.html  

Report highlights low level of UK investment in clean technology
30 March 09 – A report released today by the New Economics Foundation says that among rich nations, the UK has invested the least in clean technology as part of its fiscal stimulus. The analysis estimates that just 0.0083% of GDP has been spent on new measures that benefit the environment. Another report, commissioned by the German government and written by Lord Stern, has also been published and calls for massive investment to be made by the G20 nations in areas including large-scale CCS demonstration projects. View the full story on http://news.bbc.co.uk/1/hi/sci/tech/7971183.stm
  
 
Resources/ information/publications

Free Renewable Energy Insurance Training Kit available from the United Nations Environment Programme (UNEP)
As part of UNEP's continuous effort to promote Renewable Energy Technologies, financiers, insurers, project developers across the world can now access specialized training material on risk management for Renewable Energy Projects free of charge, with a particular focus on the risks encountered in developing countries. The Renewable Energy Insurance Training Kit prepared by the United Nations Environment Programme (UNEP), the Basel Agency for Sustainable Energy (BASE) and CarbonRe, with support from the Global Environment Facility (GEF) has been designed to enhance the understanding of insurers, financers and other renewable energy project sponsors, of climate change issues, renewable energy policy frameworks, insurance practices, risk management tools and approaches that can be developed for the renewable energy markets. More information on
http://www.energy-base.org/fileadmin/unep/index.html

Interactive Zone ‘ Constructing the Future’: The Modern Built Environment KTN is co-ordinating an Interactive Zone as part of INSITE09, Constructing the Future, which will take place 1-4 June 2009 at the BRE, Watford.  INSITE09 aims to raise awareness of the latest technologies, materials and build techniques that can contribute to the UK's sustainable future. The interactive zone will demonstrate the next generation of innovations that are just over the horizon.  It will feature 10-12 key innovations that can be applied in the built environment.  The emphasis is very much on the wow factor, with products and systems that visitors can view, touch, test and interact with including: Lower energy products and systems, Materials, Smart solutions, Building fabric systems.
 
The zone will be designed to give delegates a very different experience compared to a standard exhibition.  Innovators will also be able to man the area and the MBE KTN will coordinate a timetable to allow each innovator to give short presentations about their innovations in the zone.
Further details can be found at www.insite09.com

A Changing Climate for Property Investment: A Trustee’s Guide: The Institutional Investors Group on Climate Change (IIGCC) launches a guide designed to increase trustee awareness of the risks and opportunities that climate change and related policy developments present to their property investment activities. Please see for the report:  http://www.iigcc.org/docs/PDF/Public/IIGCCPropertyTrusteeGuide.pdf

Presentations from Carbon Capture and Storage workshop in Brussels available
The Carbon Capture & Storage Association hosted a workshop for policy makers and industry on 29th April in Brussels. Presentations are available at http://www.ccsassociation.org/events/past.html

“Commercial Building Stock and Climate Change Adaptation: Costs, Value and Legal Implications”: A summary note from the event hosted by the  London Climate Change Partnership at City Hall on Thursday 23rd April is now available.

Climate change and security: risks and opportunities for business
A report produced jointly by Lloyd’s and IISS identifies four major areas in which climate change might lead to an adverse impact on global security: the risk of water-induced conflict; issues of food security; energy security concerns; and migratory pressures. The full report is available at: http://www.lloyds.com/NR/rdonlyres/0C6F0662-5B98-49E1-A224-2D3E830947B6/0/Climatechangeandsecurity_200904.pdf

Research news

New Lancet health report published: Managing the health effects of climate change, by Lancet and University College London Institute for Global Health Commission. Please visit: http://www.ucl.ac.uk/global-health/ucl-lancet-climate-change.pdf

Social barriers to climate change adaptation
Barriers to climate change adaptation are often considered to be ecological, economical, physical or technological. But a recent analysis argues that there are also significant social barriers. Ethics, knowledge, attitudes to risk and cultural values which hamper adaptation must be considered in decision-making processes, say the authors. For more information.


Upcoming conferences/events

Discount for ABI members available:
Climate Change Adaptation for Critical Civil Infrastructure
One-Day Conference on 15 July 2009, London Plus Working Group Sessions On 16 July And Online Collaboration
Network
 
The Climate Change Adaptation for Critical Civil Infrastructure Summit taking place on 15-16 July in London brings together key organisations from the nations' critical infrastructure to discuss how to make viable business plans around different climate scenarios and how climate change strategies can be co-ordinated to make not just one area resilient, but the whole framework resilient.
 
Speakers from Met Office, Environment Agency, Scottish and Southern Energy, Ofgem, Department of Energy and Climate Change, Yorkshire Water, Highways
Agency, UK Climate Impacts Programme, United Utilities Plc, ABI
 
ABI members may claim a 15% discount on the registration fee. The
full programme and details of how to register are available on the
Summit website at http://www.climate-change-adaptation-network.com.
For further information please contact London Business Conferences on
0208 920 1400 or email info@london-business-conferences.co.uk ensuring you mention ABI

Carbon Reduction Commitment Summit London, UK, June 2-3, 2009 for more information: http://www.greenpowerconferences.com/corporateclimateresponse/crc.html