AXA Insures Mangrove Forest in Mexico

The word from AXA, who are helping protect the environment in Mexico;

In partnership with ClimateSeed and AXA Seguros Mexico, AXA Climate has developed an innovative parametric insurance product to protect the community of fishermen responsible for the restoration of San Crisanto mangrove forests against the impacts of hurricanes. In the event of a natural disaster, this insurance guarantee will play an essential role by facilitating rapid financing in order for damaged mangrove forests to be restored, as well as the repairs of related infrastructure linked to fishing or ecotourism.

The key role of mangrove forests

Mangrove forests are abundantly rich ecosystems which play a key role in addressing the challenge posed by climate change. They reduce the impact of coastal flooding and support areas very rich in biodiversity (crabs, molluscs, fish, birds, etc.), which protects and provides for local communities. Furthermore, they are powerful carbon sinks, storing up to four times more carbon than tropical forests.

However, today mangrove forests are being undermined by fish farming, coastal urbanization, pollution, and natural disasters (tropical cyclones, storms, erosion, rising sea levels…). It is estimated that more than 35% of mangrove forests have disappeared during the course of the last twenty years, even reaching more than 70% in certain areas.

The San Crisanto project

San Crisanto is a community of fishermen made up of approximately 150 Mayan families within the Yucatán Peninsula. Beyond fishing, their economic activity has been structured around 800 hectares of mangrove forest through restoration and conservation activities financed through the sale of carbon credits, as well as the development of ecotourism.

Faced with increasing climate pressure, the San Crisanto mangrove forests are highly exposed to natural disasters. Accordingly, in 2002 Hurricane Isidore destroyed 99% of the area’s mangrove forests, causing significant flooding and bringing local economic activity to a halt.

The San Crisanto mangrove preservation and restoration project has delivered numerous benefits to local ecosystems. In close collaboration with local communities, this project has successfully captured approximately 47,908 tonnes of CO2 over four reporting periods, while still encouraging the implementation of a community-based sustainable development programme, together with new sources of income. This assisted natural regeneration initiative represents a clear example of the ability of mangrove forest preservation and restoration projects to develop into viable offset projects that are able to support both local communities and natural habitats.