Biodiversity metrics to enable climate change mitigation: Zurich

In a recent report, Zurich Insurance Group has observed how biodiversity metrics make for more effective voluntary carbon markets, delving into how this potential can be realised to mitigate and adapt to the effects of climate change.

As countries focus on energy security amid Russia’s ongoing invasion of Ukraine, Zurich Insurance Group’s Climate Change Scorecard shows that the world is further from its goal to keep global temperature rise below 2°C in 2022 than in previous years.

Stephan Van Vliet, Group Chief Investment Officer, commented, “Nature-based solutions can provide a significant amount of the emission reductions needed to keep global temperature increases under 2°C, though this would require investment to triple.

“As a large investor and global risk manager – and a founding member of the Net-Zero Asset Owner Alliance and Insurance Alliance – we want to see the development of a robust and credible voluntary carbon market.

“Incorporating a metric on the wider impact of projects on nature can be supportive as there are huge potential benefits for nature and society in supporting nature-based carbon sequestration projects that also enhance biodiversity.”

Zurich notes that the alignment of the voluntary carbon market with biodiversity as being of the “utmost importance”, given the urgency of meeting net-zero targets.

Alison Martin, CEO EMEA and Bank Distribution, added, “Business, governments, scientists and NGOs need to collaborate to fast-track the development of a globally agreed biodiversity metric that can be readily integrated into carbon projects.

“This is key to transforming the voluntary carbon market into a driver of positive outcome for biodiversity and to further operationalise the link between carbon offset projects and biodiversity.”

Zurich also notes the risks of valuing one aspect of nature – carbon – more highly than any others, alongside the absolute need to promote the full bio-complexity of ecosystems to promote planetary health and resilience.

The report concludes, “A globally agreed biodiversity metric that can be readily integrated into carbon projects is key to transforming the voluntary carbon market into a driver of positive outcome for biodiversity."

Source: Reinsurance News, https://www.reinsurancene.ws/biodiversity-metrics-to-enable-climate-change-mitigation-zurich/