The second part of the 6th Assessment Report of The Intergovernmental Panel on Climate Change (IPCC) has been published. Released on 28 February 2022, it has several important inputs for insurers and risk managers. It primarily deals with impacts, adaptation and vulnerability of climate change.
The report represents the scientific consensus on pending climate change impacts and risks with inputs from over 670 leading climate scientists from around the world.
Various assessments estimate that the world will achieve approximately 3 degrees Celsius of warming by 2100. The 2022 IPCC report predicts that exceeding 1.5 degrees Celsius of warming will result in significantly increased risk after 2040.
Thus far, the world has experienced approximately 1.1 degrees Celsius average warming since the pre-industrial era.
The report said that some severe changes have already been accepted. Even if global warming is limited to 1.5 degrees Celsius – the goal of the Paris Climate Accords – increases in multiple climate hazards, such as flooding, extreme weather and death from heat exposure, are unavoidable.
Some of these risks are subject to insurance, such as flooding, health impacts, severe weather, increased fires, droughts and crop failures. The rate of change will increase as global warming increases and past events will no longer be accurate predictors of the future.
The report also provides a detailed assessment of climate change impacts, risks and adaptation in cities, where more than half the world’s population lives. People’s health, lives and livelihoods, as well as property and critical infrastructure, including energy and transportation systems, are being increasingly adversely affected by hazards from heatwaves, storms, drought and flooding as well as slow-onset changes, including sea level rise.
IPCC working group II co-chair Debra Roberts said, “Together, growing urbanisation and climate change create complex risks, especially for those cities that already experience poorly planned urban growth, high levels of poverty and unemployment and a lack of basic services.”
She said, “But cities also provide opportunities for climate action – green buildings, reliable supplies of clean water and renewable energy, and sustainable transport systems that connect urban and rural areas can all lead to a more inclusive and fairer society.” M