Today Lloyd’s underwriters are required to consider climate change explicitly in their business plans and underwriting models. The bigger risks and opportunities are still to come for nearly every industry. Public policy, consumer demand and technological innovation are all driving a shift towards a low carbon economy. A year ago in Paris, 195 countries committed to limit the rise in global average temperatures to less than 2°C, with 117 countries having now ratified that commitment. So citizens, consumers, businesses, governments, and international organisations are all taking action. And entrepreneurs are developing disruptive technologies that will create and destroy value. But which financial institutions are best positioned to gain and which to lose from this transition? Which companies and industries are most, and least, dependent on fossil fuels? Which businesses are most vulnerable to potential damage from rising physical risks? In every case, which firms have the governance, resources and the strategy to manage, and profit from, these major shifts? At present, the challenge is that investors currently don’t have the information they need to answer to these questions. This must change if financial markets are going to do what they do best: allocate capital to manage risks and seize new opportunities. Without the necessary information, market adjustments to climate change will be incomplete, late and potentially destabilising. But with the right information, financial markets can smooth the transition to a 2-degree world. Risks to financial stability will be reduced if the transition to a low carbon economy begins early and follows a predictable path.
The lessons we derived from this experience will lead global decision makers to reconsider their policies. We have already started to observe critical and permanent changes in global financial order. The future of the financial system will be in a much better shape with a pre-emptive approach. The coordination is especially needed in terms of better regulation and supervision of financial market instruments. In order for the mission of the COMCEC and thus of the Organization of the Islamic Conference to be successful, it is necessary for the decision making mechanisms to acquire a more active and global dimension. The success of the economy policies of the Islamic counties under the roof of the COMCEC depends on the formation of measures to increase trust and establishment of a close cooperation in economic and commercial areas. Annual meetings of the Governors of the Central Banks of the COMCEC countries will be very important in terms of catching up with the world’s agenda and following the recent developments. Economic activities of the related countries will be supported the most by increasing the cooperation between the central banks of the COMCEC countries, enhancing the functioning of the active mechanisms of communication in international platforms and sharing the experiences. The recovery of the economies of the Islamic countries will be fastened by increasing the exchange of information in the fields of economy, finance and banking among the member and observer countries’ central banks and financial authorities.