Today's climate policy is based on the economic idea of cap and trade. It is not clear, whether this works on an international scale. If some nations follow this route, non-complying nations may profit from lower energy prices caused by the energy saving in the complying nations.
Is there another route to saving mankind from unchecked climate change? Climate change is a risk. How about an obligatory climate liability insurance for oil, gas and coal industries? How about international rules for insurers to invest the collected premiums in projects with climate mitigation or adaptation aspects and how about rules on what are to be considered climate change caused damages?
This type of endeavor would perhaps better suit a world without a world government, a world with big business, accustomed to collaborate internationally: One condition would be the willingness of the insurance industry to collaborate internationally with insurance oversight. Would it make sense to study some elements of such strategy? Would it undermine the present climate policy? What would be clever first steps to scout the new approach? How about a conference at the Swiss Re Centre for Global Dialogue?
Category: Climate/natural disasters, Sustainable energy: Fossil fuel