Analysis of the role of the financial sector in climate adaptation
What role do financial institutions play in making the Netherlands climate-proof, and what opportunities are there in collaboration with governments? NextGreen, together with the Association of Investors for Sustainable Development (VBDO), spoke to 20 financial institutions and governments to analyze the playing field.
The financial sector is affected by the consequences of climate change. At the same time, it also plays an important role in making the Netherlands climate-proof. Together with the VBDO and on behalf of Samen Klimaatbestendig, NextGreen analyzes how governments and the financial sector can work together more effectively to make the Netherlands climate-proof.
It is sometimes thought that climate adaptation is primarily the responsibility of governments, but the discussions show that insurers, investors, and banks can also play a role. The financial sector is affected by the consequences of climate change through its customers. Think of insurers who reimburse the costs of repairs when companies' property is damaged by flooding or drought. But also think of investments and mortgage collateral that may decline in value due to (impending) climate damage. Climate change poses risks to the financial sector, but at the same time, they can also contribute to a more climate-resilient Netherlands. For example, through project financing for larger climate adaptation projects, or through price incentives and advice to their customers.
In the project 'Exploring the Financial Sector and Climate Adaptation', NextGreen and the VBDO are analyzing, on behalf of Samen Klimaatbestendig, what is currently happening in the financial sector in the field of climate risks and climate adaptation. The force field analysis provides insight into the current approach to climate adaptation in the financial sector. The analysis highlights opportunities for better cooperation between financial institutions and governments to bring a climate-proof Netherlands closer. We look at buildings and areas, as well as new and existing construction.
