On Tuesday 15 July, Lloyd's Chairman Lord Levene met with the Governor of Florida Charlie Crist and Florida Insurance Commissioner Kevin McCarty as part of the Team Florida Trade and Business Development Mission to the UK. Climate change was high on the agenda at the meeting.
What are the issues for Florida?
The State of Florida has good reason to be concerned by climate change not least because of the impact of a rise in sea level globally. Scientists tell us that global warming is predicted to cause significant rises in sea level over the course of the twenty-first century. Florida is a coastal state, with much of its southern tip protruding into the gulf of Mexico. A rise in sea levels of one metre would result in flooding in the Florida Keys and much of Southern Florida. In the long term, a rise of just six metres, according research carried out by Jonathan Overpeck, Director of the Institute for the Study of Planet Earth at the University of Arizona in Tucson, would submerge a large part of Florida.
The second climate-change related concern for Florida is an increase in the number of hurricanes and tropical storms in the region. Florida is particularly susceptible to hurricanes – in fact it is hit by the storms more than any other state in the US. Recent scientific evidence suggests that a rise in ocean temperature as a result of climate change will lead to more intense and destructive hurricanes, resulting in bursting river banks and an excess of water that is unmanageable, particularly in Florida’s flat terrain.
What is Florida doing?
On 13 July 2007, at the Serve to Preserve Summit on Global Climate Change, Governor Crist signed three new groundbreaking Executive Orders relating to climate change in Florida. The first order commits state Government reducing greenhouse gasses by 10% by 2012 and by 40% by 2025. Office buildings either rented or constructed in the future and all state vehicles will have to be energy efficient.
The second Order requires the reductions in state-wide emissions to 2000 levels by 2017 and 1990 levels by 2025.The Order also states that Florida will adopt the California motor vehicle emission standards of a 22% reduction in vehicle emissions by 2012 and a 30-percent reduction by 2016.
The final Order has two elements. The first is the formation of an Action Team on Energy and Climate Change, made up of various stakeholders from across Florida. The second involves the creation of partnerships with Germany and the UK to discuss and promote initiatives that broaden the Kyoto Protocol and reduce the emission of greenhouse gases beyond 2012. Among the many benefits of this initiative is the increase of climate-friendly trade between the UK and Florida.
How can Florida and the insurance industry work together to mitigate climate change?
There can be no doubt as to the commitment of Governor Crist to the fight against climate change. At the meeting at Lloyd’s on Tuesday he said:
“Events such as the terrible tornadoes and flooding that have ravaged America’s Midwest, and the recent cyclone that devastated Myanmar, remind us of the threats we face from global climate change. The natural beauty that surrounds us and the extreme weather patterns that spawn death and destruction urge us to take action to prevent further devastation from global climate change.”
During Tuesday’s meeting, Lord Levene and Governor Crist discussed ways that the State of Florida and the market can work together to combat and manage the threat of climate change. The Governor was particularly interested in the Climate Wise initiative, of which Lloyd's is a founding member. The Climate Wise principles provide a framework for insurance companies worldwide to set out how they will build climate change into their business operations. The principles have been developed following consultation between The Prince of Wales’s Business & the Environment Programme, Lloyd’s, the ABI, and other insurance market participants.
Florida Insurance Commissioner McCarty agreed with the Lloyd’s view that adaptation is crucial in the fight against climate change, and that action needs to be taken now:
“The threat of continuing global warming is an issue that all Floridians need to be thinking about, because unless we all take action to help reduce its effects, the frequency and severity of future storms that strike Florida could bring about devastation greater than we ever have seen.”
Lloyd’s assured Governor Crist that research and analysis into climate change will continue through the Lloyd’s 360 risk project. Lloyd’s committed to sharing ideas and information with Florida, as it is only through collaboration that we will be able to tackle the global challenge of climate change.
