Federal Environment Minister Gabriel discusses opportunities and risks of climate change with representatives from trade and industry
Climate change has a mounting influence on international financial markets: on the one hand, the market share of companies offering climate friendly technologies is growing, on the other hand, insurance companies have to adjust increasingly larger claims brought about by extreme weather events. Opportunities and risks of climate change are therefore the topic of a conference taking place on the invitation of Federal Environment Minister Sigmar Gabriel and the President of the Federal Environmental Agency, Andreas Troge, at the Bankenplatz in Frankfurt today. More than 150 representatives from domestic and international banks, insurance and investment companies are participating in this financial services conference.
During the opening of the conference, Federal Environment Minister Gabriel called on the companies of the financial sector to recognise and make use of the economic opportunities of climate protection. He noted that climate change creates profound changes, both positive and negative, in the conditions for the success of companies, individuals and national economies. "Environmental technologies and in particular innovative energy technologies are the lead markets of the future. Those who are the first to understand this have an advantage over competitors", said Minister Gabriel.
According to a study carried out by the company Roland Berger Strategy Consultants, the turnover of environmental technology markets in Germany alone will grow from 150 billion euro to 1,000 billion euro by 2030.
Emissions trading, too, is becoming an increasingly important market segment for the financial sector: in 2006 the international carbon market already had a volume of 30 billion US dollar. Depending on how international guidelines are formulated, international emissions trading is expected to have a turnover between 50 and 800 billion US dollar in 2025. The carbon market therefore has a central function in financing the climate friendly transformation of energy systems worldwide.
Minister Gabriel: "Policy makers have to fulfil their task. National and international framework conditions set by climate and energy policies are necessary requirements for markets to support climate change. We have to send signals for investment so that companies are able to plan securely. The energy and climate package adopted by the federal cabinet in Meseburg is a good foundation for future developments in Germany."
Progressive financial companies are already taking advantage of new business opportunities and opening up markets with new services: they offer investment funds with promising technologies, for example, in sectors such as renewable energies or energy efficiency. The financing of the modernisation of buildings or insurance against natural disasters and other risks of climate change have become important business segments.
The results of the financial services conference in Frankfurt will be included in the consultations of the next ministerial meeting in the framework of the Gleneagles Dialogue from 9 to 11 September in Berlin. This meeting of environment and energy ministers of the 20 major energy consuming countries will also be dealing with investments for a sustainable energy supply.