Climate impact: we’ve observed shift in commercial risk evaluation, says Ngelale

Special Presidential Envoy on Climate Action (SPEC) Ajuri Ngelale has said there is a significant paradigm shift in how commercial risk and value are assessed as a result of the increasing frequency of climate disasters.

Speaking on the sidelines of the Global Energy Transition Congress in Milan, Italy, Ngelale said the insurance industry, particularly in developed markets, is undergoing such major changes.

He emphasised that a future where companies are evaluated based on verifiable climate impact or mitigation measures is becoming a reality across sectors.

Ngelale, on Monday, joined a Leadership Roundtable of global leaders to co-create solutions for catalysing private sector investments in renewable energy and carbon capture technology projects.

According to him, the discussion focused on creating coordinated pools of de-risking finance to provide political risk guarantees for emerging markets vulnerable to climate change.

He said: “Gradually, we are seeing a paradigm shift with respect to how commercial risk and value are evaluated in the wake of an increasing frequency of climate disasters.

“The insurance industry, especially in developed markets, is just one sector seeing major changes – and a future in which companies will be assessed according to verifiable measurement of climate impact or mitigation is evolving into reality across sectors.

“On Monday, on the sidelines of the Global Energy Transition Congress in Milan, Italy, I joined a Leadership Roundtable of cabinet-level officials and captains of industry from across the globe as we sought to co-create solutions on how to catalyse large-scale private sector-led investments in renewable energy and carbon capture technology projects, through the active creation of coordinated pools of de-risking finance in a way that provides political risk guarantees to cover specific vulnerabilites found in emerging markets that are prone to dynamic and unique manifestations of climate change.”

This development signals a crucial shift in the global approach to climate action, with Nigeria playing an active role in shaping the conversation.