Weekly Roundup December 2

Invert is focused on providing clients and subscribers up-to-date news on net-zero developments, carbon markets, and how many sectors are evolving to meet climate change goals and ESG requirements.

Special Announcement

We’re excited to announce that we have appointed a new, independent board of directors as we continue to expand our operations and portfolio. Joining the Invert Board of Directors are Stacy Kauk, Head of Sustainability at Shopify; Dominique Hussey, Vice Chair of leading Canadian law firm Bennett Jones LLP; and Tim Saunders, experienced public market CFO and independent board member. Read more.

Canada Unveils New Climate Adaptation Strategy with More Than $1-Billion Commitment

Environment and Climate Change Canada released their first climate adaptation strategy, focused on preparing the country to deal with the worst impacts of climate change. The adaptation strategy is focused on five priority areas including building and maintaining resilient public infrastructure, protecting and restoring nature and biodiversity, and reducing the impacts of climate-related disasters. By making adaptation investments now, the strategy aims to reduce climate vulnerabilities from natural disasters and build Canada’s resilience against the increasing number of climate-related disasters already being experienced. 

Invert Insights: At the core of adaptation is planning for a changing environment or risk exposure to ensure your nation, or organization, has the proper safeguards in place to minimize the consequences and is prepared to respond accordingly.  

Property Catastrophe Reinsurance Rates Likely to Rise by More Than 10% in January Renewals

Property catastrophe reinsurance rates are likely to increase by well over 10% this January when the majority of contracts renew, according to Fitch Ratings. Increasing frequency and severity of natural catastrophe claims will have caused an estimated US$120 billion in insured losses in 2022, including one of the costliest natural catastrophe events ever, Hurricane Ian, causing insurers to leave the market and reduce overall capacity to insure against natural catastrophes. Rate increases are expected to be most pronounced in the regions worst affected by natural disasters, with tighter terms and conditions including reduced limits also expected.

Invert Insights: Rising systemic risk and increasing frequency of catastrophic events will continue to impact the cost and ability of reinsurers to protect against climate events. As premiums become cost-prohibitive or simply unavailable, the inability to insure against certain perils will impact both the cost of and access to capital.

Commission Proposes Certification of Carbon Removals

The European Commission has published its first proposal for an EU-wide voluntary framework for the certification of high-quality carbon removals as part of its goal of becoming the world’s first climate-neutral continent by 2050. The Commission's aim is to ensure transparency and credibility of the certification process and ensure carbon removal activities bring clear benefits for the climate. The Commission will be developing tailored certification methods for carbon removal activities, prioritizing those which also provide biodiversity benefits, and setting rules for independent verification of removals and for recognizing other certification schemes to demonstrate compliance. 

Invert Insights: Carbon removals have an integral role in meeting net-zero climate targets and this move proposal puts the EU in the lead of carbon removal policy design. While this announcement was only the first step, the methods and rules established by the Commission are certain to shape the future of the carbon markets.

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