The Nature Conservancy and Blue Marble Microinsurance have announced an agreement to embed insurance protection into ecofriendly Silvopastoral Systems in Latin America.
The Silvopastoral system minimises greenhouse gas emissions from cattle ranching – reportedly one of the highest contributors to global warming – helping to prevent climate change and create sustainable agricultural practices.
The Nature Conservancy will build microinsurance into its programme to encourage uptake amongst ranchers, who will be insured by Blue Marble against any potential losses during the implementation phase of the Silvopastoral System.
Dr. Isabel Studer, Executive Director for the Mexico and Northern Central America program at The Nature Conservancy, said; “over the last five years, silvopastoral production systems were piloted in one community in Chiapas and six communities in the Yucatan Peninsula with great success.”
“However, since these production models have struggled with rapid adoption, we’re grateful for this partnership with Blue Marble that will deliver benefits to both the environment and the people of Chiapas.”
Kathy Baughman McLeod, Managing Director for Climate Risk & Resilience at The Nature Conservancy, added; “Our partnership with Blue Marble Microinsurance brings tangible evidence of how the private sector is inextricably linked to building stable and resilient local economies in the face of an uncertain climate.”
The Nature Conservancy is using insurance as a catalyst to increase the scale of their innovative programmes that both improve quality of life in farming communities and help address climate change, McLeod said, adding; “With 68,000 people being displaced by climate change every day, the world demands innovative approaches and the time is now.”
China is an example of this being accomplished on a large, governmental-scale – its pioneered harnessing re/insurance to catalyse its clean energy revolution through a reinsurance deal with Swiss Re that provides cover against volatility of green energy production as the government looks to stabilise green energy revenue to attract further investment.
The promise of a steady cash-flow irrespective of the weather will provide the solid foundation needed for the renewable sector’s further development and growth in line with the government’s 12th Five-Year Plan for developing second – and third-tier cities and green and efficient energy.
As the world increasingly shifts to green energy and ecofriendly agricultural practices, new lines of risk are emerging and market demand for re/insurance to facilitate the transition growing.
For re/insurers who are seeing losses to profit margins from traditional lines of business under soft market conditions, these emerging risks are providing much needed pockets of growth while contributing to social-economic stability and sustainable development.
