Outcomes of the Elmau summit

Panel discussion at the G7 Stakeholder Conference on climate risk insurance

Panel discussion at the G7 Stakeholder Conference on climate risk insurance

© Ralf Rühmeier

Climate change is causing more and more natural disasters, for instance floods and droughts. The poorest people are the ones who contribute least to climate change, yet they are also the ones suffering the most and the ones who are least capable to take any precautions. The international climate agreement that is to be negotiated and adopted in Paris in November/December 2015 will set key priorities in regard to global climate protection. In the context of Germany’s G7 Presidency the BMZ has been cooperating with the Federal Environment Ministry (BMUB) to provide impetus for the decisive phase of the international climate negotiations.

Germany will honour its commitments. And we have also set the bar high with and for the G7 by committing to two concrete initiatives, one on expanding renewable energies in Africa and one on climate risk insurance schemes!

  • Together with the G7 and our partner countries we want to provide up to an additional 400 million poor people with insurance against the risks of climate change by 2020! Those who have contributed least to climate change are the ones who are feeling its effects the most, be it severe flooding, droughts or heavy storms.
  • The plan to be pursued, in cooperation with the African Union, is to add 10 gigawatts to Africa's installed capacity of renewable energy generation by 2020. That is the equivalent of 10 large coal-fired power plants. African countries have ample renewable energy resources: sun and wind power are available in abundance; and with prices for photovoltaic and wind systems falling, these technologies can compete with plants fired by fossil fuels.

What is the G7 initiative on climate risk insurance about?

BMZ video about the consequences of climate change and climate risk insurances

BMZ video about the consequences of climate change and climate risk insurances

© BMZ

By providing climate risk insurance to poor people in developing countries who are especially at risk from climate change, Germany and the G7 are making an important contribution to a future climate agreement.

According to recent estimates, only about 100 million people in developing countries and emerging economies are currently covered by climate risk insurance. The G7 initiative on climate risk insurance aims to increase the number of people covered by this kind of insurance by 400 million by 2020. The initiative will be implemented in close partnership between the G7 states, developing countries and emerging economies.

Representatives from politics, business and civil society came together at the G7 conference on climate risk insurance in Berlin on 7 May 2015 to discuss the details of the initiative.

Climate risk insurance is a means of obtaining insurance against the risks of extreme weather events. What may be an incalculable drama for individuals or for individual governments can become a calculable risk for the community of the insured. Such insurance systems will receive capital from donors such as Germany. Our goal is to be able to deal with the risks, instead of being limited to disaster management.

German Minister Müller at the G7 Stakeholder Conference on climate risk insurance on 7 May 2015 at the Gasometer in Berlin

Opportunities and challenges – Study on climate risk insurance

A new study on the impact of climate risk insurance was presented at the conference: "Climate risk insurance for strengthening the climate resilience of poor people in vulnerable countries". The study commissioned by the BMZ looks at how the G7 initiative on climate risk insurance schemes can be designed. It reviews potential target regions, instruments, structures and means of implementation. The study was conducted in cooperation with the Munich Climate Insurance Initiative (MCII) and Munich Re and was first presented at the high-level G7 expert conference in Berlin.

Background: Climate change mitigation and adaptation

Climate change with its wide-reaching impacts has become one of the biggest challenges humanity must face. More frequent disasters caused by natural phenomena and extreme weather events, increasing water scarcity, flooded coastal regions and the accelerating loss of biodiversity are direct consequences. Developing and emerging countries in particular are strongly affected by those consequences.

All the nations of the world need to play an active role when it comes to reducing global carbon dioxide emissions and halting global warming. Industrialised countries have a particular responsibility in that regard, as it is they that have been responsible for the majority of environmentally harmful emissions up to now. At the G7 Summit in Brussels in June 2014, the G7 group of industrialised nations reaffirmed their pledge to mobilise 100 billion US dollars from public and private sources each year for climate financing from 2020 onwards.

As it has in the past, Germany must continue to lead the way internationally in terms of signing up to binding commitments to mitigate climate change. (...) At the same time, Germany should support its partner countries in reducing their greenhouse gas emissions and managing risks associated with climate change. The transfer of modern, low-emission technology on fair terms can make a significant contribution to this process.

from the Charter for the Future "ONE WORLD – Our Responsibility"