The German State Secretary at the Federal Ministry for Economic Cooperation and Development highlighted the role that private finance can play in the fight against climate change.
Speaking at the COP27 conference in Sharm el-Sheikh, Jochen Flasbarth said the gap between the resources governments have and what they need cannot be closed without private funding.
“Even if the budget of typical former donor countries were not under pressure – but they are – even then, we would not be able to fill the gap, even by tripling or quadrupling the funding we currently give. “So it’s very clear that we need private finance and we need the right instruments. To bridge the gap of resilience and loss and damage is much more difficult than in other areas.”
He added: “If I look at mitigation, we have the right technologies. If you’re setting the right framework for investing in renewables and green hydrogen over time and ask me, sooner rather than later. No public money is needed; it will finance itself. This will be the new normal as a business. Addressing loss and damage and the resilience funding gap is much more difficult. But here we have instruments in place.
Michel Liès, Chairman of Zurich Insurance and Chairman of the Insurance Development Forum (IDF), also spoke on the COP27 panel.
He said: “I think when things start to move together I feel happy. And that brings me to the Insurance Development Forum. It’s something close to my heart. This is dear to many of my peers in the field of insurance, as it simply reflects the fact that insurance can, should, must play a more intense role in the challenge ahead.