Gerhard Rupprecht, Chairman of the Board of Allianz Deutschland AG, about what must be done in Germany to fight climate change and create growth and jobs.
 | Gerhard Rupprecht, Chairman of the Board of Allianz Deutschland AG (Photo: Allianz AG) |
What are your estimates of the potential economic impacts, positive as well as negative, that climate change can have in Germany?
Climate change is a global phenomenon with local effects. There will be massive changes in our environment and severe impacts on nature, society and economy – also in Germany. It affects the wealth of societies, the availability of natural resources, the price of energy and the value of companies. The insurance industry is on the frontline of climate impacts and has an early warning function for the whole economy.
On the other hand, climate protection is an opportunity for economic growth – especially in Germany. The key solution to climate change is the development of low-carbon technologies. We need both alternative energies and more efficient energy conversion to reduce greenhouse gases.
Germany is in a very good position to be in front of that. The goal is a 20-percent reduction of greenhouse gases emissions by 2012 (from 2000). Our environmental technology industry will be able to create 700,000 new jobs between now and 2030. The volume of the market for environmental technology will increase from 60 billion euros in 2006 to 400 billion euros in 2030.
But there are preconditions for growth. We are pinning much hope on the G8 summit and hope for a strong signal in favor of climate change negotiations. The climate change and energy strategy endorsed by the European Union and the German governments eight-point plan for reducing carbon dioxide emissions should be implemented as soon as possible.
 | Infographic (click on the image to enlarge)Germany is among the world's leading producers of renewable energy (Graphic: Allianz) |
How do Allianz employees and customers in Germany react to climate change and the recent debates about it?
The attention for climate change issues is very high in Germany. Recent polling suggests that nearly 70 percent of the people regard climate change as a danger for their own future, especially caused by natural catastrophes.
First of all, Allianz has to care for its customers in two ways: we want to use our traditional insurance expertise as a risk manager to help our customers understand climate risks that impact them, and we want to develop financial products and services that help reduce those risks.
How will climate change affect your business? What are the risks and opportunities?
Insurance companies like Allianz must be interested in reducing global warming. More natural catastrophes will raise the costs of claims. Every storm like Kyrill or a flood like 2002 in Eastern Germany causes massive damages we have to pay for. There is a need to prepare for the negative effects that climate change may have on our business and on our customers. Climate change risk is getting more and more integrated into our business procedures.
The result will be a mitigation of economic risks and solutions for our clients. But there are also business opportunities associated with climate change like emissions trading, investment in renewable energies and new insurance products to help customers manage environmental risks. One example: in June Allianz Germany will start a new real estate coverage for commercial clients considering sustainability.
editor: Thilo Kunzemann
publishing date: June 4, 2007
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