Traditional insurance works by transferring risk to those better able or more willing to bear risk, and also by the pooling of risk (Goldemberg "et al.", 1996, p. 25). Since the risks of climate change are, to some extent, correlated, this reduces the effectiveness of pooling. However, there is reason to believe that different regions will be affected differently by climate change. This suggests that pooling might be effective. Since developing countries appear to be potentially most at risk from the effects of climate change, developed countries could provide insurance against these risks.