Banks, insurers and investors face financial risks due to climate change. By making their lending and investments more climate-proof they can contribute to adapting our economy to climate change. The Working Group on Climate Adaptation conducts research and presents proposals in this area.
Companies, governments, banks, insurers and investors face financial risks due to climate change. Such risks include the consequences of rising sea levels, more frequent extreme weather, greater water discharge through the rivers, severe drought and soil subsidence. The business community, the financial sector and the government are therefore considering how to adapt the economy to climate change. In the coming decades, this will involve extensive investment in infrastructure, economic sectors and the physical design of the Netherlands.
The new Working Group on Climate Adaptation will investigate how best to contribute through investment and finance to adapting our economy to climate change. The working group will be looking at scenarios, methods and data needed by the financial sector to assess the physical impact of climate change on the economy and will identify finance and insurance solutions. Examples include particular forms of insurance, risk sharing, guarantees and public-private partnerships, which also create opportunities for a greener, more pleasant and above all future-proof living environment.
Several industry organisations have already set up partnerships on physical climate-related risks. Their current activities are also described in the illustrated document Nederland klimaatbestendiger maken: Welke rol spelen financiële instellingen? (Climate-proofing the Netherlands: What role do financial institutions play?, produced by Samen Klimaatbestendig (Climate-proofing Together). Banks, insurers, real estate investors and the government will join forces in this working group.
The working group will exchange knowledge in the field of climate adaptation about such aspects as scenario analyses, methods and data. It will also identify sector-wide opportunities for public-private adaptation finance and indicate how current bottlenecks can be overcome. The working group is expected to report on its findings by the end of 2023. It also seeks to explore joint activities and aims to reach out to Dutch central and local authorities to explore collaboration opportunities.
The working group will initially launch several studies. For example, it will quantify the consequences of climate change, calculating the costs of possible scenarios for climate-proofing the Netherlands in the long run. It will use the following studies as a basis.
The working group will also be investigating options for financing. It wants to explore innovative public-private forms of financing and their added value compared to existing market financing, based in part on the toolbox on financing climate adaptation (Dutch) of the Ministry of the Interior and Kingdom Relations.
The working group was set up in June 2022 and is supported by Samen Klimaatbestendig. Its members are representatives of:
ABN AMRO, Achmea, Altera Vastgoed, a.s.r., Athora, Bouwinvest, Deloitte, ING, Ministry of the Interior and Kingdom Relations, Ministry of Infrastructure and Water Management, Ministry of Agriculture, Nature and Food Quality, Nationale Hypotheek Garantie, NN, NWB Bank, Pension fund Rail & OV, Philips Pension fund, Rabobank, Staf Deltacommissaris, Stimuleringsfonds Volkshuisvesting (SVn), Univé, Dutch Association of Insurers. The working group is chaired by Gijs Kloek from Achmea.
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