Environmental scientists are arguing that a carbon credit trading scheme to reduce deforestation in developing countries can be improved by applying key concepts from the insurance industry.
The researchers say that the UN-promoted Reduced Emissions from Deforestation and Forest Degradation (REDD) scheme is riddled with problems.
They are advocating an REDD insurance policy, iREDD, where the buyer and seller together assess the risk of a forest conservation project, agree on that risk and then purchasing an insurance policy scaled to that risk.
The researchers believe that such a policy will protect the buyer, the seller and the biodiversity of the forest.
Read more at University of Adelaide