The giant re-insurer, Munich Re, wants carbon pricing to increase - massively. The Liberal government is running into stiff resistance to its $25/tonne carbon tax. Munich Re argues the tax should be 115 Euros per tonne or $170.60 Cdn.
Munich Re, which is exposed to natural catastrophes caused by extreme weather events such as hurricanes and floods, has been warning about climate change since the early 1970s.
In the fourth quarter of 2018 alone, a typhoon in Asia and two wildfires in California triggered a 56 per cent year-on-year drop in Munich Re’s quarterly profits.
Mr Wenning called for the introduction of a meaningful price on carbon emissions that create financial incentives to accelerate the switch from fossil fuel to renewables. “This can be either done by emissions trading or by a tax on carbon,” he said.
“The CO2 price needs to be high,” said Mr Wenning, adding that the use of fossil energy needed to be made economically unviable for the biggest consumers such as steelmakers, the chemical industry and transport.
The Munich Re chief acknowledged that a price on carbon as high as necessary to fight climate change would cost jobs, because some carbon-heavy companies would probably go out of business.Yes, some carbon-heavy companies would go out of business but, if we fail to act, what fate awaits them? They're simply incompatible with the survival of our global civilization. That's just the way it is. Ask Big Carbon how they suggest we get around this. They don't have a clue.