France scaled back its anticipated solar energy capacity over the next decade. (Credit: Nirut Sangkeaw/Adobe Stock)
(Bloomberg) — French households, businesses and local authorities will face soaring costs for insurance if the country fails to adapt to a changing climate, the government said this week.
The cost of climate disasters may double in the 30 years through 2050, reaching a cumulative €143 billion ($155 billion), it said in an adaptation plan. At a briefing in Paris, Ecology Minister Agnes Pannier-Runacher said climate change is a “tangible reality” that could leave some citizens unable to get insured.
During the past two decades, France’s insurance industry has faced increasingly costly claims as extreme weather causes droughts, storms and fires. That’s raised doubts over the sustainability of the current system of compensation, and concern that some insurers will simply withdraw from high-risk areas.
The government's plan provides little fresh funding. Its aim is to raise awareness and spur preparation by local authorities, energy firms, farmers and other industries. It dovetails with France’s 10-year energy road map, which envisages huge growth in renewables and greater energy efficiency.
The latest version of the road map cut a 2035 target for solar capacity by 10%. Hydrogen goals were also trimmed as the industry’s development progresses more slowly than expected.
See also:
- Climate change could reduce real estate values by $1.47 trillion
- Majority of U.S. homes don’t have flood insurance despite rising risk
- Claims activity in the age of greening
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