General Insurance Article - IFoA urges G20 to apply phase out of fossil fuel subsidies

 As experts in long-term risk management the IFoA believes that climate risk is one of the greatest risks facing current and future generations. This initiative asks G20 Governments to include a timeframe for phasing out fossil fuel subsidies in the 2016 G20 communique, which will to put into action the commitments made in Paris in December 2015.

 The IFoA’s members are based, and work, across the world, and we believe that the greatest chance of having a meaningful impact to managing climate risk is if we work together as a global community to address the continuing emissions of greenhouse gases.

 Nico Aspinall, Chair of the IFoA’s Resource and Environment Board comments: “This Statement asks the G20 to actually implement its long-standing commitment to phase out fossil fuel subsidies and to set a timeframe for this of 2020.

 Without these subsidies, there would be a more level playing field for the investment in renewable energy sources we desperately need to avoid the worst consequences of climate change in the future.”

 “This commitment would send a clear message to businesses and investors that our dependence on fossil fuels needs to diminish. They should start diversifying energy sources and investing in energy security, which will help us to take positive action towards mitigating climate change risk.”

 “For this initiative to be successful, as well as a commitment to transparency and publically available annual reporting, the G20 should also commit to implementing means for ratifying these reports.”