Mark Thomas - New Mayor for Auckland

Counting Climate Costs

The cost of climate change is the biggest externality facing the world economy said Andreas Dombret, a member of the German central bank this week, at an address in Singapore.

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He said said insured losses resulting from adverse climate events have tripled in the last 30 years, with the actual costs much higher because not all events can be claimed.

He thinks that Paris climate long-term goal of keeping the increase in global average temperature to well below 2°C above pre-industrial levels has no chance of being achieved unless a new global green economy develops.

He said banks were among the institutions that had much more work to do as there were few globally that had long-term climate risks incorporated into their risk frameworks.

He spoke how ‘Green Finance’ can be a way that the financial sector can contribute to mitigating the effects of climate change and to promoting environmentally sustainable developments – for example, by steering funds towards green technologies.

His full speech is here.


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