Climate change
"Germany and the EU need Bali to provide momentum"
The United Nations Environment Program (UNEP) Financial Initiative, chaired by Allianz and Dresdner Bank, urges politicians to adopt reduction targets beyond 2012 at the Bali global conference on climate change. Three questions for Allianz SE board member Joachim Faber.
Joachim Faber: "A mandate from Bali is vital"
What are your expectations for the climate conference in Bali?
Faber: It is imperative that the conference issue a clear mandate for action. Given the new information on climate change, now is precisely the right moment to do so. Germany and the EU need Bali to provide the necessary momentum to drive forward the climate policies of their governments and companies.
Why is that so important?
Faber: Most of the industrial sector needs international agreements on climate change to avoid being at a competitive disadvantage. Especially since DAX-listed companies actually achieve only 30 percent of their turnover in this country.
With its ambitious goals, Germany has been a role model for the rest of the EU and pushed the Union to set high goals of its own. Yet one country alone cannot make all the running – a mandate from Bali is vital for integrating Asia and the USA in the process.
With its ambitious goals, Germany has been a role model for the rest of the EU and pushed the Union to set high goals of its own. Yet one country alone cannot make all the running – a mandate from Bali is vital for integrating Asia and the USA in the process.
What could happen if no mandate for action comes from the Bali conference?
Faber: The emissions trading system would wobble, the volumes traded would fall dramatically, and the goal of limiting global warming to two degrees Celsius would be in question.
In addition, the financial services industry would have to do significantly more research into the effects of climate change, which would of course be greater, and take into account worst-case scenarios along with rising medium and long-term risks. This in turn would lead to higher rates, especially for disaster insurance, which is particularly vulnerable to the consequences of climate change.
In addition, the financial services industry would have to do significantly more research into the effects of climate change, which would of course be greater, and take into account worst-case scenarios along with rising medium and long-term risks. This in turn would lead to higher rates, especially for disaster insurance, which is particularly vulnerable to the consequences of climate change.
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