ICC suggests National Climate Change Insurance Fund

[suguhopes]

The Indian Chamber of Commerce has suggested greater government
efforts in establishing a long-term National Carbon budgeting for each
industrial sector and introduction of a National Climate Change
Insurance Fund.


Releasing the findings of its survey, 'Business risks and
Opportunities of Climate Change' in Kolkata, the Chamber observed that
the government must gear up towards establishing a well- defined long-
term National Carbon Budgeting for the industrial sector with medium-
term benchmarks set out for commitment period.

The survey suggested introduction of a National Climate Change
Insurance Fund with a cap on paid losses, introduction of a strict
vehicle emission standard and a low carbon-fuel standard to reduce
fuel emission intensity.

"Government may seek international cooperation to develop
decentralised renewable energy systems to meet the needs of the
population lacking access to modern clean energy services," the ICC
report said.



It suggested that the government develop adaptation programmes to
facilitate 'climate-proofing' of existing investments and planning of
infrastructural investments against incremental risks.



Listing sectors which might suffer due to climate changes, the report
said hydro-electric power generation would receive a setback, while it
would have an adverse impact on food storage business and there was a
threat of vector-borne diseases impairing the workforce.



The ICC conducted the first of its kind survey of 49 industries in the
eastern region to assess the level of industrial awareness on climate
change and understanding of the risks and opportunities.



It said that 97 percent of the respondents believed that climate
change would affect their business, 83 percent had initiated action to
mitigate and adapt to climate change, 76 percent were aware of
emission benchmark for products, and 69 per cent had a dedicated
environment cell.


The Chamber suggested that the insurance sector play a major role in
offering financial incentives for businesses which have considered
"climate-proofing" while setting up plants.



"Organisations must conduct greenhouse gas accounting and measure
emissions associated with both use and disposal of the products," the
ICC report said.



Businesses must equip their technology to reduce water use and to
recycle used water in the system. "Rainwater harvesting and
destination should be practiced to ensure sustainable usage of water,"
the report said.

N.Sukumar
Research Analyst