As Mark Carney, Chairman of the Financial Stability Board, once pointed out:  "Once climate change becomes a defining issue for financial stability, it may already be too late".[1] Swiss Re has a long tradition of analysing and providing solutions to help manage climate risk. We are deeply engaged in the topic and are happy to work with our partners in China to develop related innovative risk solutions.

With strong government support, green energy will continue to develop rapidly in China. There are major projects in the pipeline, and stakeholders need to be aware of the new and complex risk landscape facing the sector. Some projects will be built on untested grounds exposed to seismic activity, or in wind-rich areas exposed to earthquakes and typhoons. Weather volatility in particular is an important variable in solar and wind projects. A seamless, integrated risk management programme complemented by innovative insurance solutions can help improve a project’s risk profile, increase its financial viability, and raise its attractiveness to lenders and investors. To build reliable energy supplies for the future, the green energy industry can utilise the knowledge and expertise of global insurers and reinsurers to make the most effective use of insurance as a risk management tool.

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[1] "Bank of England's Carney warns of climate change risk", BBC News, 29 September 2015, www.bbc.com/news/business-34396961