Mexico kicked off 2017 with a 20 percent spike in gasoline prices, driven in part by the phasing out of subsidies. Some consumers set fires at gas stations—a response that highlights the backlash countries can face as they stop subsidizing carbon-based fuels and start encouraging climate-friendly alternatives. Now the Mexican government and stock market are experimenting with a gentler tool for discouraging carbon emissions: cap-and-trade. Mexico, which in 2012 passed the developing world’s first climate law, is well placed to set an example for other developing economies looking to shrink their carbon footprints.
When the rains failed to come last year in central Isiolo County, Kenya, Mohamed Dahir figured he might lose 40% of his herd of 400 sheep and goats. Like several million other pastoralists in northern Kenya and across the border in Somalia and Ethiopia, Dahir and his herd live migrating between pastures.
Dahir did indeed lose some animals, but he received a payout from an emerging kind of livestock insurance: based on predictions of vegetation growth in the area and how many animals that might harm, his index-based livestock insurance policy gave him 50,000 Kenyan shillings (about £370) in cash before the drought and its consequences really settled in. He was able to buy enough hay from distant counties to save 95% of his herd.
Index-based livestock insurance gets its name from the ecological indices used to calculate it, such as rainfall and vegetation growth. It now covers over 15,000 Kenyans in both commercial and government-issued varieties. The Kenyan programmes, established by the International Livestock Research Institute (ILRI), a CGIAR research centre in Nairobi, have paid out several times including a record US$2.2 million (£1.7 million) in early 2017.
But it took several tries and careful tuning to different communities across Kenya to create the livestock insurance policy. The insurance will probably require constant updating in the face of climate change and other shifts affecting its target population and the ecosystem in which they live.
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When general store owner Melchor Villanueva leans on his countertop he can see his whole world under his hands. The counter’s glass surface displays photos of his community: young soccer players, teens in their coming-of-age quince años finest, and bandanna-wearing fishermen. Many descend from survivors of Hurricane Janet, which in 1955 killed a third of the population of Xcalak, a beach town on the Mexico-Belize border, and destroyed the town’s coconut plantations. “It left only sand,” Villanueva recalls. Continue reading