We’ll need binding promises for climate action to work
While climate chaos gallops ahead, climate action is stalled," said United Nations Secretary General Antonio Guterres at a recent speech to mark the release of a report called Emissions Gap 2022 (EG-2022). Climate chaos ran amok in 2022. Hurricane Ian in Florida, a summer of record temperatures in Europe, unprecedented floods in China and Pakistan, widespread floods in Central and West Africa, and a year-long drought in China have been only some of the main disasters. Climate disasters to date include 14 severe weather events, six floods, five droughts, three tropical cyclones and a windstorm. A report from the Centre for Science and Environment says that India clocked extreme-weather impacts on a startling 88% of the 273 days this year until the end of September. The cost in terms of lives and property is mounting. At least 16,000 people died in the European heatwave and now over 2,000 have perished in Pakistan’s floods. An estimate of economic costs is difficult to make so soon, but it is likely to cross $500 billion this year when the final bills for Hurricane Ian are counted. Insurance costs, already skyrocketing due to high inflation, the pandemic and burdens of the Ukraine conflict, are poised to rise even further, with record reinsurance claims being presented. With reinsurance companies coming under such pressure, the very structure of the reinsurance industry may require governments to step in as insurers ‘of last resort’.
