ICIEC and Climate Change

DRIVING SUSTAINABLE DEVELOPMENT FORWARDS
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Overview

At ICIEC, we are acutely aware of the escalating global challenges posed by climate change. Our mission is centered on bridging the finance gap in climate action through our innovative insurance solutions. We are steadfast in our commitment to aiding our 50 Member States as they strive to attain their developmental goals, with a particular focus on resilience, mitigation, and adaptation in response to climate-related challenges.

Recognizing that climate change poses a significant threat to global stability, security, and prosperity, ICIEC prioritizes addressing this critical issue. Our approach is integral to ensuring sustainable development and economic growth, which are at the heart of our organization's mandates. As ICIEC, we understand the importance of a proactive and comprehensive response to the climate crisis.

In our journey towards integrating climate considerations into our operations, ICIEC is dedicated to adapting and evolving our operating model. This transformation is aimed at providing enhanced support to our clients, Member States, and their communities. Our strategy includes adopting new policies and approaches that realign our business model in coherence with the overarching policies and practices of the IsDB Group. This alignment ensures our full integration into the ecosystem and adherence to the Paris Agreement and the MDB Framework Alignment principles.

A critical aspect of our commitment is the promotion of climate change actions and investment initiatives. ICIEC is dedicated to minimizing the environmental impact of our operations, including efforts to offset emissions from travel. This initiative underlines our resolve to be at the forefront of combating climate change and fostering a sustainable future.

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ICIEC Climate Change Policy

The Climate Change Policy of ICIEC is structured around three key operational objectives and five foundational pillars:

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Training and Capacity Building

Our approach to climate action starts with knowledge. We are implementing comprehensive training programs and developing a Green Assessment Matrix. The goal is to substantially enhance our team’s understanding and capabilities in addressing climate change. This initiative includes workshops, seminars, and continuous learning opportunities to keep our staff at the forefront of climate knowledge and action.

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Business Targets

A significant focus of our strategy is on our business practices. We are dedicated to ensuring that 35% of our total business insured is directed specifically towards climate action initiatives. This ambitious target reflects our commitment to integrating climate considerations into the core of our business operations and decision-making processes.

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De-risking Partnerships

Recognizing the importance of collaboration, we are actively engaging with global partners to work on blended climate finance solutions. These partnerships aim to mitigate risks and promote investments in sustainable projects. By leveraging our expertise in risk mitigation, we aim to unlock new opportunities for sustainable development and green investments.

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Team Expansion and Reporting

As part of our commitment to enhancing our impact, we are planning to expand our team. This expansion will bring in new talents and perspectives to strengthen our capabilities in climate action. Additionally, we are in the process of preparing ICIEC’s first Sustainability Report. This report will not only showcase our progress and achievements in climate action but also highlight our ongoing commitment to sustainability. It will serve as a transparent communication tool to our stakeholders, detailing our initiatives, impacts, and future goals in sustainability.

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Innovative Product Development

We are also focusing on developing innovative insurance and financial products specifically tailored to support climate action. This includes products designed to facilitate investment in renewable energy, energy efficiency projects, and other sustainable initiatives, thereby contributing to the global transition to a low-carbon economy.

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Mobilizing Climate Finance

A crucial part of our strategy is to mobilize climate finance. We aim to increase our involvement in projects and initiatives that have a positive impact on the environment, thereby contributing to global efforts to combat climate change.

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Research and Development

We are targeting to invest in research and development to stay at the forefront of climate change solutions. This involves exploring new methodologies, technologies, and approaches that can enhance our capacity to support Member States in their climate action endeavors.

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Stakeholder Engagement and Collaboration

We are committed to engaging with various stakeholders, including governments, NGOs, and the private sector, to foster a collaborative approach to climate action. This includes participating in dialogues, conferences, and forums focused on climate change and sustainability.

   Climate Action Case Studies

ICIEC has been at the forefront of numerous impactful climate action projects

Future Plans and Vision

Policy and Investment Focus

We aim to continue the development and improvement of policies and guidelines relating to climate change and sustainability.

Sustainable Financial Horizon

Our vision includes the establishment of a climate-centric fund, offering discounted insurance premiums for financing climate action initiatives.

ICIEC at the United Nations Framework Convention on Climate Change Conferences (COP)

ICIEC's active involvement in the United Nations Framework Convention on Climate Change Conferences (COP) reflects its deep commitment to addressing global climate challenges. Since its first participation at COP22 in Marrakech in 2016, where ICIEC organized a high-profile panel discussion under the theme “ECA Risk Mitigation in Renewable Energy Investments,” the organization has consistently played a pivotal role in these conferences. The panel at COP22 provided a prime platform to highlight the benefits that ICIEC, in collaboration with its partners, extends to Host Countries, Investors, Lenders, and Contractors in renewable energy projects. This event marked the beginning of ICIEC's robust engagement in global climate dialogues.

At COP26 in Glasgow in 2021, ICIEC's presence further cemented its role as a key player in the climate action sphere. The momentum continued at COP27 in Sharm El Sheikh in 2022, where ICIEC's participation was not only active but also impactful. The conference saw ICIEC co-organizing three timely side events and three fireside chats, fostering discussions and insights into critical climate issues. A significant highlight was the signing of a Memorandum of Understanding (MoU) with the Africa Finance Corporation (AFC), focusing on delivering mark-to-market Climate Action projects in African Member States. This partnership leverages ICIEC’s expertise in de-risking solutions, demonstrating a strong commitment to sustainable development in Africa.

The COP28 in Dubai, UAE, held on November 30, 2023, was another landmark event for ICIEC. It marked the launch of the groundbreaking Climate Change Policy, a testament to ICIEC’s dedication to mainstreaming the de-rsking of transactions and projects that combat Climate Changeinto its core operations. Furthermore, ICIEC's agreement to join the Energy Transition Accelerator Financing (ETAF) Platform, managed by the International Renewable Energy Agency (IRENA), underscores its proactive approach to supporting energy transition initiatives. The side events hosted by ICIEC at COP28 addressed vital topics in climate finance and mitigation, contributing valuable insights and solutions to the global climate conversation.

Looking ahead to COP29, scheduled for November 11-24, 2024, in Azerbaijan, ICIEC is poised for active participation. As the event will be held in one of ICIEC's Member States, it presents a unique opportunity for ICIEC to showcase its initiatives, share its experiences, and further its commitment to climate action on an international stage. The conference will serve as a platform for ICIEC to continue its influential role in shaping global climate policies and strategies, particularly in areas related to renewable energy investments and sustainable development.
ICIEC's involvement in COP29 and beyond is expected to not only reinforce its position as a leader in climate risk mitigation and sustainable finance but also to foster new partnerships and collaborative efforts. The organization's ongoing engagement in these pivotal conferences is a clear indication of its resolve to be at the forefront of global efforts to combat climate change and promote a sustainable future. ICIEC's contributions and insights are anticipated to play a significant role in driving meaningful discussions and actions at COP29 and in shaping the global response to climate challenges.