PwC’s climate chief: ‘adaptation must be tackled in step with net zero strategy’
Zooming in on the Climate Change Committee's recent report Investment for a well-adapted UK, Emma Cox, global climate leader at PwC, makes the point that a lack of action on adaptation plans is concerning, and the CCC's new report has merely reinforced those worries.
Cox said today that “successful and ongoing adaptation is as important to the UK’s future as net zero, and therefore must be tackled in step with our net zero strategy.”
“This report is a welcome intervention, reinforcing the scale of the challenge and the pace required if we are to avoid the most severe and disruptive impacts of climate change,” she added.
“Investment in climate resilience is critical to achieving this, but the estimated £10bn per year cited by the CCC cannot be unlocked without the Government tackling adaptation at a policy level in the same manner it has with Net Zero,” Cox stated.
An attractive environment for private investment must be urgently created, along with increases in government spending and the embedding of climate adaptation into regulatory mandates.
Cox continued: “Our recent report with the World Economic Forum highlights how companies are increasingly taking steps to assess their climate risks and plan for resilience, but that action on adaptation remains challenging.”
Cox believes that demonstrating value in adoption outcomes will be of primary importance for unlocking private investments.
“We have studied a number of investment cases, for example looking at why insurance companies should invest in adaptation including Nature Based Solutions such as restoring mangroves to help prevent coastline erosion and hence avoid losses.”
She stressed that government incentives such as regulatory changes or R&D tax credits would help to effectively direct funds into adoption strategies thereby stimulating competition and driving down costs of such measures.
“Innovative blended sustainable finance solutions need to be developed to better distribute risks across the financial system and encourage private investments.”
“Eyes will now rightly turn to the next National Adaptation Programme, due this summer, which must take bold steps to lay out what a successful adaptation strategy will look like,” Cox concluded.
