Let us introduce you to some of the diverse range of people who work with us at ICIEC and look at what they do, the how, and why.
Meet Dr. Salih Suwarelzahab, Chair of the Climate Change Taskforce at ICIEC. With a solid background in nature and biodiversity, from his base in Jeddah, we asked Salih five questions to get the measure of how he sees the importance of his role at ICIEC and the support ICIEC is giving to climate action.
1. How did you get from a PhD in International Natural Resources Law and Policy from the University of Dundee to your current role as chair of the Climate Change Taskforce for ICIEC?
The genesis of the taskforce itself was at COP22, the Paris Summit. It was a very momentous occasion. The President of the IsDB at the time attended and took the decision to pivot the IsDB Group towards prioritising climate. I was peripherally involved in wider discussions on environmental standards at the Group level.
I attended COP26 in Glasgow for ICIEC with our delegation headed by the CEO. The conversation has moved beyond simple questions about the existential threat of climate change. We are a multilateral owned by member states, and the member states themselves are asking ICIEC for help with climate finance.
The CEO has prioritised climate action as an issue. It is a transformation that is currently underway. And due to my qualifications, I was asked to be the chair of the taskforce. We are working on many fronts operationally and in training as well to transform the organisation to mainstream climate action.
Operationally, the Climate Action Task Force comprises seven of us. I am from the legal side, and there are underwriting and the business development zones, which are sub-Saharan Africa, the Eurozone, Asia, and the Middle East, and North Africa, and reinsurance are also involved.
Reinsurance helps us benchmark with our industry partners. We work with multilaterals, but we reinsure with Lloyd’s in London as well. I also do benchmarking exercises to try and optimise the transformation into something doable that does not affect the top line of the business but at the same time that prioritises this important issue.
2. How is ICIEC going to build to make a difference in climate action globally?
We have a significant role in climate action. The funding gap is huge. With the war in Ukraine, people are starting to rehash old questions about whether it is time to go back to dirty fuels and what the priority is. We do not see that argument as undermining the promise of renewable energy for many of our members. Many OIC member states do not have investment grade ratings or access to finance. A lot of them are in Africa and sub-Saharan Africa. Many do not have adequate electricity for basic domestic use, let alone industrial uses. We can help with de-risking and help contribute towards the development of electrification in rural and urban sectors.
We were at the International Federation Forum recently in Cairo, which was attended by Mark Carney, former governor of the Bank of England, and the UN (United Nations) special envoy on climate finance, and John Kerry, President Biden’s special representative on climate. Carney was specifically talking about the need for financing plus de-risking. That is the role I see for ICIEC.
There are several funds and initiatives we will be joining, such as the German-based InsurResilience, which is the platform for the world’s largest insurers.
Germany has the G7 presidency at present, and there is a lot of momentum going on and commitments made globally, such as the launch of an insurance-based ‘global shield’. ICIEC is galvanising that financing, helping the commitments to be translated into actual disbursements and projects on the ground, offering credit enhancement, and mitigating risks for financiers whilst always being led by member country needs. The focus will be on resilience and will be broadening out to countries most vulnerable to climate change of the designated ‘V-20’ (the 20 most vulnerable to climate change, 14 are ICIEC members).
Our role is de-risking and catalysing finance and translating these global commitments into actual disbursement and projects and transactions on the ground, which make a difference and contribute towards the achievement of the Sustainable Development Goals. In all member states where there is limited electricity, research and development is contributing to lower costs of renewables. So, we have an enormous potential role in climate action.
3. In light of this, how will you approach COP27, and what are you going to make your priorities for ICIEC?
COP27 is the largest global meeting of its kind. ICIEC has a chance to bring member states who are its shareholders, and policyholders, which are usually private sector companies around the table. We will be hosting several events with partners, including large international commercial banks and specialised funds, and InsureResilience itself.
We will also be having “spotlight on” sessions with officials and specialists from member states to outline how they see their priorities from a government perspective.
Under the Paris Agreement, there are nationally determined contributions, which is a blueprint of priorities for climate action, and it will be interesting to hear from the governments about their priorities and needs.
We will also be signing MoUs at the event. One of which is with Masdar – a leading R&D underpinned by a UAE sovereign wealth fund with a strong renewables drive. This will be a fantastic opportunity to bring the relevant stakeholders around the table and try to bridge the financing gaps.
4. Sounds like you have a fascinating role at ICIEC. Can you walk us through a typical day and its most exciting or frustrating moments?
It is quite eclectic in terms of what can show up on my desk. There’s work on the climate side and then there is the insurance operations work in export credit insurance and foreign investment insurance.
Also, because I am a French speaker, I work on transactions and projects in our Francophone African member countries. The breadth of work is always interesting, the pace is sometimes challenging.
The excitement is the constant learning curve and also the positioning of being in between member states governments on the one hand, with the way state machinery works, and then the results-driven private sector, and the way it works.
Climate action is a cross-cutting priority for the private sector and governments alike under ESG for the former and the SDGs (Sustainable Development Goals) for the latter. It is a real, sometimes existential, issue of how to cope with higher commodity prices, electricity prices and natural disasters which are precipitated by climate change.
5. That is a challenging and serious role. What does your leisure time look like, and what do you do to relax?
Being in Jeddah has given me the opportunity to learn to scuba dive on the weekends in the Red Sea. That gives me a very real insight into the natural world, as opposed to just watching David Attenborough, I get to experience marine life. And, of course, the oceans are one of the most threatened ecosystems by climate change. I have seen some coral bleaching over the years. But it is just always fascinating to be immersed in the natural world and to appreciate it.
In Jeddah, the King Abdullah University of Science and Technology has a focus specifically on marine biodiversity. I have dived with them, and you really see the vulnerability of the ecosystem in the warmest sea in the world. It really makes one appreciate the impact humans can have on living creatures.
