Parametric Insurance & Carbon Risk
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Growing wildfire risks hinder carbon offset efforts.
Burning more often, more intensely, and for longer – wildfires are increasingly impacting the global forestry industry, calling for parametric insurance to cover the risks. As the demand for forestry assets continues to rise steadily, wildfire represents an increasingly significant risk exposure. To date, more than 17,000 wildfires have burned over 800,000 acres in the US -meaning that an average of about 6 acres per minute are burned. Much of western US is already suffering from severe drought, and the hot and dry weather that human-caused global warming has brought about will accelerate the risk of wildfires accordingly.
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