Establishing the Restoration Insurance Service Company (RISCO)
Mangroves are extremely valuable ecosystems. They deliver irreplaceable climate adaptation and mitigation, offer numerous biodiversity benefits, and are among the most carbon-dense ecosystems on Earth, storing up to 10 times more carbon than terrestrial forests.
Yet insufficient recognition of the economic benefits of mangrove forests, combined with a lack of knowledge on how to carry out or sustainably finance their conservation and restoration, continue to contribute to their loss. An estimated 25% of the world’s mangroves have been lost in the past 20 years alone.
ORRAA member Conservation International is creating a Restoration Insurance Service Company (RISCO) to capture the economic value of threatened mangroves through two revenue streams: 1) insurance-related payments for the modelled flood risk reduction benefits of mangroves and 2) blue carbon payments for the validated climate mitigation value of mangroves.
RISCO will be the first instrument to sustainably finance mangrove conservation and restoration through revenues from both blue carbon sales and insurance-related payments. RISCO will also work with the insurance industry to develop new products that incorporate the value of the risk mitigation benefits of mangroves.
Upon completion of pilots in the Philippines, Conservation International plans to establish RISCO as a social enterprise to enable knowledge-sharing, networking and training, and will look to replicate the RISCO model in other countries such as Costa Rica, Indonesia, and Vietnam.