Insurance and commercial banks
Developing a process for stakeholder involvement following the adoption of the EU strategy for adaptation to climate change: the insurance sector and commercial banks
Client: DG Climate Action
The EU strategy on adaptation to climate change recognises the importance of the financial sector for climate change adaptation in the EU, particularly the involvement of the insurance and banking industries to enable risk sharing and access to capital for adaptation measures.
This contract was aimed at increasing the involvement of the private sector in adaptation, especially insurance and commercial banks, through extensive dialogue with stakeholders to help identify the expectations and needs of both sectors. It also explored the opportunities offered by public-private partnerships to support adaptation planning and action in the EU.
The project included the following deliverables:
1. a background study on the role that the insurance sector currently plays in climate change adaptation under the existing EU legal framework. Includes assessment of the role that insurance could potentially play in the future, and recommendations on the appropriate EU legal measures;
2. workshops with stakeholders to explore how insurance could be a more effective tool for climate change adaptation, particularly for risk management and for providing information on incentives for risk prevention;
3. research on how the commercial banking sector can better understand climate change risks and consider mobilising funds and sharing best practice on adaptation;
4. workshops to raise awareness on adaptation and initiate a dialogue with commercial banks;
5. a compilation of case examples and lessons learned on the use of public-private cooperation for adaptation and a series of recommendations on how to promote the use of public-private cooperation from across the EU Member States to enable effective sharing and reduction of climate change risk and vulnerability.
Milieu was actively involved throughout the different project components, including workshop participation and contributions to the background studies. Moreover, Milieu was responsible for the compilation of case examples, as well as the formulation of a series of recommendations on how to promote the use of public-private cooperation from across the EU Member States to enable effective sharing and reduction of climate change risk and vulnerability.
The outputs form the first steps towards implementation of two priority actions contained in the EU Adaptation Strategy: “Promote insurance and other financial products for resilient investment and business decisions” (Action 8), and “Bridge knowledge gaps as a means toward better informed decision making” (Action 4).