Hear from Gordon Bennett, Managing Director at ICE, as we dive into theory and practice of carbon pricing and its important role in driving the transition to net zero.

Carbon pricing is the poster child of market-based solutions to climate change. The principle is simple: by assigning a cost to greenhouse gas emissions, we incentivize polluters to emit less, and to do so in the most cost-effective way.

But there’s a significant gap between the theory and practice. Currently, only 24% of global emissions – about 12.8 gigatonnes – are covered by pricing mechanisms such as carbon taxes or cap-and-trade. On top of that, just half a gigatonne was traded in voluntary markets last year. Clearly, there’s still a long way to go. In this episode, we explore the carbon pricing gap, including:

• Why it exists, what’s needed to close it;
  
  
• The integrity challenges facing voluntary carbon markets, and how to address them;
  
  
• And how central counterparties can help drive the transition by ensuring transparent, reliable pricing.

To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: https://www.garp.org/scr

For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: https://www.garp.org/sustainability-climate

If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: climateriskpodcast@garp.com

Links from today’s discussion:

• The World Bank’s Carbon Pricing Dashboard: https://carbonpricingdashboard.worldbank.org/
• Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA): https://www.icao.int/environmental-protection/CORSIA/Pages/default.aspx
• GARP Climate Risk Podcast with Simon Sharpe: https://www.garp.org/podcast/five-times-faster-cr-240321
• The Oxford Offsetting Principles: https://www.smithschool.ox.ac.uk/research/oxford-offsetting-principles
• GARP Climate Risk Podcast with Mark Campanale: https://www.garp.org/podcast/net-zero-supply-side-issues-cr-220303

Gordon Bennett, Managing Director of Utility Markets and Global Head of Environmental Markets, ICE

Gordon has been Managing Director at Intercontinental Exchange, Inc. (ICE) since February 2015. Mr. Bennett is responsible for the sales and business development of ICE’s global environmental portfolio, the world’s largest environmental marketplace.

He is a member of the Board of ICE Endex, ICE Futures Abu Dhabi, Spark Commodities and a member of the Strategic Advisory Board of BeZero Carbon. He contributes to a wide range of external environmental and energy market initiatives including a member of the Nature Based Solutions Taskforce of the Sustainable Markets Initiative, the Transition to Net Zero Working Group of the Climate Financial Risk Forum, the City of London VCM Steering Committee, the VCMI Stakeholder Forum, the Advisory Board of the University of Cambridge Energy Policy Research Group and was named Environmental Finance’s sustainable business leader of the year in 2022.

Prior to ICE, Gordon spent 12 years at the global energy broker, Spectron, joining as Group Financial Controller and latterly serving as Chief Executive Officer. He is a Fellow of the Institute of Chartered Accountants in England & Wales.

Hear from two leading experts, as we explore how insurance is adapting to climate change and the role of the industry beyond underwriting.

Insurance plays a critical role in protecting households and businesses from the impacts of climate change, and with physical risks on the rise, it will become ever more important. However, insurers have also been significantly impacted by these risks, with annual losses from natural catastrophes exceeding 100 billion dollars for four consecutive years.

The primary concern is that these physical risks eventually become uninsurable, as we are already seeing for example with wildfires in California, leaving communities without the very protection that they most need. In this episode, we explore how the insurance industry has and should respond to these challenges, including:

• How insurance modelling must evolve to better capture the physical risks from climate change;
• The role of insurers in helping clients and policymakers understand and prepare for physical climate risks; and
• Why adaptation is now a top priority for allowing insurance to be effective and help spread climate resilience across our society and economy.

To find out more about the Sustainability and Climate Risk (SCR®) Certificate, follow this link: https://www.garp.org/scr

For more information on climate risk, visit GARP’s Global Sustainability and Climate Risk Resource Center: https://www.garp.org/sustainability-climate

If you have any questions, thoughts, or feedback regarding this podcast series, we would love to hear from you at: climateriskpodcast@garp.com

Annemarie Büttner, Lead Climate Risk Solutions, Swiss Re

Annemarie leads on corporate climate risk solutions at Swiss Re, helping companies identify, assess, reduce, and report the impacts of climate change to their businesses. She has 10-years’ experience focused on consulting and insurance, working on a range of topics including renewables, natural catastrophes, and parametric insurance.

Swenja Surminski, Managing Director Climate and Sustainability, Marsh McLennan

Swenja is the managing director of climate and sustainability at Marsh McLennan, as well as a Professor in Practice at the London School of Economics. In her career as an academic, Swenja researched climate risk management and resilience strategies, with a focus on public policies, financial instruments and individual behaviour. She has also held several advisory roles with corporates, regulatory authorities and governments, including the Bank of England and the World Bank.