Allianz: Jörg, for the last two years, you with the support of other Allianz colleagues have been working on a report on an Extended EU Taxonomy. Congratulations, but before you tell us what this report is about and why it is important, can you explain where it fits in?
Jörg Ladwein: Certainly. We are getting close to crunch time on climate change. Governments need to honor their pledges to the 2015 Paris Agreement, or the world will not be able to limit the climate disaster to only 1.5 degrees Celsius (2.7-degree Fahrenheit) increase in global temperatures.
Actually, forget 1.5°C. According to by the United Nations Environment Programme, the promises countries made at COP26 Glasgow last year to cut emissions by 2030 put the world on track for warming of at least 2.7°C – which will lead to catastrophic changes in the earth’s climate. To have any chance to rein in global warming this century, we need to halve annual greenhouse gas emissions in the next eight years.
Allianz: I thought the European Union was taking significant initiatives in this regard?
Jörg Ladwein: The European Union has launched bold initiatives. Starting in 2018 and continuing over the few last years, it unveiled a sweeping set of environmental initiatives to create the world’s first carbon-neutral continent by 2050. Known as , it touches everything from state-aid rules to a green industrial policy and a carbon border tax on imports.