Bermuda has stated its ambition of becoming the world’s “climate risk capital”, from its existing position as the underwriting hub of one third of the world’s climate catastrophe insurance.
The Government of Bermuda shared this statement in its White Paper, titled “The Bermuda Difference: Bringing expertise, resource, and finance to the world´s biggest challenge”, published on November 30 at the start of the COP28 summit in Dubai.
The delegation will be represented at the summit and attended inter alia by the island’s Premier The Hon David E Burt JP, MP, and Deputy Premier The Hon Walter Roban JP, MP.
According to the White Paper, Bermuda plans to build on its position as provider of a percentage of the world’s catastrophe insurance underwriting capacity, with on-island insurance assets of over $100 billion, a first for the island.
“We have led the way in attracting properly risk-assessed assets from the private equity and other sectors. Our goal, simply, is to be ‘the world’s risk capital’. Additionally, our on-island business community has proven strong in support of our net zero targets,” it was stated in the paper.
Adding: “We are planning to meet or beat all internationally agreed targets, whether as signatories to the Paris Agreement or not, with the key support of our business community.”
The paper also highlighted Bermuda’s key position in oceanic conservation as it is custodian of the largest maritime area in the world, some 460,000 sq km of ocean. A fifth of which it has designated as an Economic Exclusive Zone (EEZ) protected fully from human activity.
Moreover, Bermuda is also the lead trustee of the dozen or so countries looking after the Sargasso sea, a crucial asset for conservation and spawning.
The island plans to become a leader in wave energy, as it could theoretically produce 100% of the island’s current electricity consumption, according to the report.
Its pilot project aims to build a 40MW wave park to provide about 10% of Bermuda’s energy needs. The country’s plan is to include wave energy, making our commercial partners eligible to apply for a utility-scale licence, taking its rightful place in the landscape of energy in Bermuda.
The White Paper also highlighted Bermuda’s 100% replacement of its bus fleet with EVs, a move that puts the island on track for 85% reduction in carbon footprint by 2035 and Net Zero by 2050.
Additionally, Bermuda has also installed 15MW of solar capacity in the last three years, more than many much larger Paris signatory nations have managed.
Minister Roban said: “The environment, particularly in its maritime aspect, is at the heart of national life and economic policy. We welcome COP28 as a further opportunity to share and to build on our unique and vital contribution to the planet in this area.
“Our world leading insurance and financial services sector plays an ever-growing part in providing security and mitigation for those most affected by climate change. As the proverb goes, “We inherit from our parents, but are borrowing from our children’. The time for action is now.”
Bermuda is aware of the continuing challenges and responsibilities of our unique geographic situation, as well as its duty to other low-lying territories less well-placed than themselves.
“In the near future our focus will be on improving the island’s resilience to climate change through our Climate Change Study and Marine Spatial Plan. We view the COP process and participation as at the core of our international partnerships in this.” the paper concluded.
