The Parametric Insurance and Trust Fund for Páramos provides rapid funding for early response and long-term resilience against wildfire damage and human-induced degradation in Colombia’s Páramos ecosystems. It ensures these rich habitats gain the protection they require and strengthens their ability to reduce risks while promoting conservation in a sustainable and equitable way. 

Páramos are neotropical high mountain biomes vital for water supply in the northern region of the Andes in South America. Colombia’s Páramos—vital for water security and carbon storage—face increasing human-induced degradation and wildfire threats due to climate change. Chingaza Páramo, which supplies 80% of Bogotá’s water, lacks formal protection from the city, leaving underfunded local responders struggling. Limited adaptation funding and slow public processes delay action, worsening risks and threatening millions who depend on these fragile ecosystems. 

Parametric Insurance and Trust Fund for Páramos offers a practical solution to protect ecosystems from wildfires by providing preemptive adaptation financing and emergency disaster risk finance to manage fires, loss, and damage. When extreme climate conditions, such as severe heat, are detected, the insurance triggers automatic payouts, providing immediate resources for response and restoration. Before a wildfire event, the Fund engages communities in risk reduction activities and provides funding to restore degraded areas.   

The Parametric Insurance and Trust Fund for Páramos beneficiaries include Bogotá’s 8 million residents. Their instrument reduces risk before an event and addresses impact during and recovery losses after, safeguarding carbon reservoirs like Chingaza, which stores up to 520.9 tons of carbon per hectare (ha). Socioeconomic impacts include reducing post-wildfire recovery time and employing women in ecological restoration, supporting Colombia’s National Parks and underfunded local disaster response teams.