By Michael W. Beck, Oliver Quast & Kerstin Pfliegner
University of California Santa Cruz, Social Impact Partners and The Nature Conservancy
Both ecosystem-based adaptation and climate risk financing and insurance can be used to improve adaptation, reduce and transfer risks, and strengthen resilience to the growing effects of natural and man-made hazards. There is a burgeoning and growing interest in where these strategies overlap and can be mutually beneficial for adaptation. The substantive engagement between the insurance and environmental sectors is relatively new.
It is therefore hardly surprising that there are currently few fully integrated climate risk finance and insurance and ecosystem-based adaptation products, and that such solutions face some challenges. Still, there are many common interests and significant opportunities that could help improve the integration of climate risk finance and insurance with ecosystem-based adaptation and, more generally, nature-based solutions. These can lead to innovations that are beneficial for both sectors and, above all, to improved results for the resilience of endangered people and nature.