Researcher studies an outplanting of elkhorn coral in Dry Tortugas National Park. Photo: (Photo Credit Carlton Ward)
Could insurance policies offer a new way to protect nature?
Mexico has just launched a plan to insure coral reefs at the popular tourism destination of Cancun.
Backed by the Mexican government, the major insurer Swiss Re, and the environmental charity The Nature Conservancy, local businesses will pay premiums to protect the reef if it gets damaged.
Any payouts will be used for restoration of the reef, and environmentalists want to use similar insurance-based models to achieve other environmental goals: say to encourage farmers to stop clearing rainforests, or to protect mangrove swamps that provide important protection in the event of a tsunami.
Mark Tercek, the president and the CEO of The Nature Conservancy, tells us how the scheme in Mexico works.
