Bermuda has everything to lead in climate finance space
Bermuda has all the attributes to be a global leader in the climate finance space, helping companies meet their climate goals while also attracting capital to Bermuda and creating jobs, David Hart (pictured), CEO of the Bermuda Business Development Agency (BDA) told delegates attending the Bermuda Climate Summit taking place this week (June 26-27) in Hamilton, Bermuda.
“It is our mission to grow and diversity the Bermuda economy,” he said in his opening remarks. “We have a climate risk solutions initiative to help to achieve that. We want to create business solutions and jobs of the future. Bermuda all the attributes to be a global leader in this space.”
That theme was further developed in a keynote seaside chat in which Jim Nadler, CEO, KBRA, interviewed The Hon. Walter Roban, JP, MP, deputy premier of Bermuda. Nadler stressed that he has always considered Bermuda as being very innovative in the way it constructs its regulatory environment. “The sandbox idea has been really amazing,” he said, referring to the idea originally developed for the re/insurance industry, but which is being developed for renewable energy initiatives.
He added that Bermuda also represents a natural intersection between climate change and the re/insurance industry and financial landscape. “You have shown the world that you can lead
on climate risk and innovation,” he said. “As a new rating agency, we see climate risk as very important in terms of how we view ratings. But coming to Bermuda, we have been very much welcomed. It is easy to meet people and from a regulatory perspective there is a real openness to new ideas and new players. I think that welcoming environment is part of the reason Bermuda has become so innovative.”
Roban gave an overview of the progress Bermuda has made to address the issue of climate change, both at an island level and in terms of how its industries and expertise can help the world deal with climate risks. He stressed the muti-agency government approach that has been adopted at the highest level and described some of the detailed projects and studies it has invested in which will allow it to project the impact of climate change on Bermuda for the next 100 years.
“But we also want to ensure Bermuda remains a place for innovation in the energy space just as we have been in insurance and reinsurance,” he said. “We are in the process of forming a regulatory sandbox for this space, which will invite innovative opportunities for Bermuda. But that very idea came from the re/insurance sector. That has been an inspiration for how to invite innovative opportunities in what is a very mature regulatory environment. We are very pleased on how well that has been received.”
He added that has a centre for risk transfer, it makes Bermuda the ideal place to be the centre of climate risk. “There are opportunities and solutions. It is very important for the world – and no other jurisdiction can do it.”