Climate and energy

G20 Climate and Energy Action Plan for Growth

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Implementing the Paris climate agreement will require a strong international alliance. It must also be combined with sustainable development. During its G20 Presidency, Germany therefore made a point of closely linking the implementation of climate, energy and development goals in G20 and developing countries.

The G20 Hamburg Climate and Energy Action Plan for Growth is a clear show of support for the Paris climate agreement. All the G20 countries have committed themselves to this plan. The only exception is the US government, which has stated its intent to withdraw from the Paris Agreement. The Action Plan sends a clear message. There can be no going back. A strong alliance of industrialised and developing countries, the private sector, civil society and municipalities is working on realising a climate-friendly model of growth and economic activity for the future.

The countries' own national climate plans, the Nationally Determined Contributions (NDCs), will drive implementation of the Paris Agreement. Yet the existing NDCs will not be enough to sufficiently limit global warming. That is why they must not only be rigorously implemented but also, in future, made even more ambitious and fully integrated into the development plans of the individual countries. That is the task being tackled by the NDC Partnership, which already has 68 members: developing countries, industrialised countries, multilateral development banks and UN organisations.

The energy sector has a key role to play in climate action; at the same time, energy is an important foundation for economic and social development. The Climate and Energy Action Plan for Growth therefore also includes measures to modernise the energy infrastructure in Africa using renewable energies. This is to be done primarily through the Africa Renewable Energy Initiative.

The effects of climate change can already be felt today – and in many developing countries the impact is dramatic. Even a massive mitigation and adaptation effort will not succeed in preventing at least some damage being caused. That is why one particularly important aspect is to achieve financial protection for the people who are most exposed and vulnerable to the impact of climate change. It is therefore planned, for example, to further roll out insurance programmes for climate risks and natural disasters.

Against the backdrop of a World Bank study commissioned by the BMZ, the G20 is calling for a global partnership to expand climate risk insurance. We want to ensure that assistance for the poorest and most vulnerable is rapid and reliable in the event of drought, storm damage or floods. It is not enough to simply rely on humanitarian aid. Climate risk insurance schemes guarantee rapid payouts, are an incentive for people to take precautions against disasters and they draw in the insurance industry, with all its knowledge and financial clout.

In addition to this, the Action Plan calls on the World Bank and the regional development banks to take on greater collective responsibility for supporting developing countries and emerging economies in implementing the Paris climate agreement. The multilateral development banks have a key role to play in terms of both financing sustainable infrastructure and providing advice to member countries on development and financial planning.

These initiatives have helped to make the interests of the poor and vulnerable a key element of the G20 Action Plan. The next steps towards implementation were taken at the COP23 UN climate conference in Bonn in November 2017, where the BMZ joined forces with 40 partners – including Ethiopia, Fiji and the UK – to launch the InsuResilience Global Partnership. The BMZ announced that it would provide 110 million euros for this effort, including through World Bank channels. The Partnership is intended to provide risk finance and insurance for climate disasters, thus giving the poorest worldwide a chance to cope with droughts and floods.

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