Lloyd’s, the world’s leading specialist insurance market, today announced it is partnering with the Brazilian Foundation for Sustainable Development (FBDS) to raise awareness of climate change in the country.
The new partnership will seek to help businesses, government bodies and individuals throughout the region, understand climate change and how they can respond and adapt to future changes.
Lloyd’s Chairman, Lord Levene, said:
“For an insurer, there can be few greater concerns right now than climate change, and at Lloyd’s we feel the impact of extreme weather more than most people. Brazil receives very little natural catastrophes, so it is essential that we work with Brazilian businesses and government to prepare for what may occur in the future.
“While natural catastrophes are low, Brazil is already starting to experience event that are triggered by climate change. For example, the Southeast of the country has seen a 58 per cent rise in the frequency of extreme rainfall in 100 years, while the Amazon region was in drought in 2005.”
Israel Klabin, Chairman of the Board of Trustees of FBDS, said:
“Climate Change is the most important problem that humankind has to face this century and is the essence of the FBDS’ work. Our partnership with Lloyd’s is very important and will surely contribute to increasing the knowledge of the main stakeholders in Brazil on this subject.”
The project continues the research that Lloyd’s has been conducting on climate change through its 360 Risk Project. The project will focus on four key aspects:
- Global climate change and extreme events in Brazil – this paper will address how global climate change affects the occurrence of extreme weather events in Brazil, such as severe flooding, and the impacts on Brazilian society.
- Adaption in the agricultural sector in Brazil – traditional farming knowledge has permitted farmers to understand which crops best suit their lands. With global climate change (including surface warming and rain instability), this knowledge will need to be revised since crops that were adapted to certain regions will have to be farmed elsewhere in order to maintain the same productivity.
- Risk and adaption in the energy sector in Brazil – Brazilian electricity generation is highly dependent on hydro power plants. Changes in the intensity and distribution of rain during the year may affect the balance between supply and demand. The diversification of electricity generation (without increasing utilisation of fossil fuels) is the main challenge for Brazil in this sector.
- Sea level rise and adaption in Brazilian major coastal cities – a great part of Brazilian population and infrastructure are close to the Atlantic Ocean. Rio de Janeiro and Recife are two major cities that can be greatly affected by sea level rise. Thus, in order to avoid huge losses, companies, government and the civil society will need to adapt their infrastructure.
The final report will be released at a summit later in the year, and distributed widely by Lloyd’s and the FBDS.
Notes to editors:
About the FBDS
The Brazilian Foundation for Sustainable Development is a non-profit organization, founded in 1992 through the association of 24 leading Brazilian companies, focused on the concept and implementation of sustainable development. Its Board of Trustees combines solid corporate expertise with strong technical/scientific know-how. FBDS has already developed more than a hundred projects related to Climate Change, Conservation and Sustainable Use of Natural Resources and Corporate Sustainability. Added to this are the elaboration of the Brazilian Stern Report (“Economics of Climate Change in Brazil”) and several studies related to the impact of Climate Change on the Brazilian natural resources – water, forests, biodiversity, etc.
Climate change in Brazil (BRAZILIAN INSTITUTE FOR SPACIAL RESEARCH)
- First recorded hurricane in the South Atlantic - Catarina - in 2004, with heavy rains and winds estimated at about 150 km / h, killing 11 people on the continent and on the ocean and causing destruction in dozens of cities
- Drought in the Southeast region, in 2001, which contributed to the rationing of energy
- Drought in the South region, in 2005 and 2006, with serious consequences for agriculture in the region
- Drought in the Amazon region in 2005
- Decrease in temperature range, with an increase of minimum temperatures higher than the maximum temperatures in all regions of Brazil, in the last 40 years
- In the South region, an increase in the frequency of hot days in the winter
- In the Southeast region, an increase in the frequency of warm and moderately warm nights and a decrease in the frequency of cold nights
- In the Southeast region, an increase of up to 58% in the frequency of extreme rainfall in 100 years
- In São Paulo, during the whole year, there was a decrease in the frequency of rain with accumulations of less than 5 mm per day and there was an increased frequency of rain with accumulations of more than 30 mm, mainly in February and May
- Positive trends in the number of days with intense rainfall (10mm) and very intense rainfall (20mm) concentrated in a short time, and the amount of rainfall concentrated in one event which are indicators of rain producing floods, during the period 1961 to 2000. These trends suggest an increase in intensity and frequency of rainfall events in the South and Southeast regions.
