Carbon Credit Insurance

Carbon markets can accelerate action to achieve climate targets. Carbon credits incentivize investment in projects that remove, reduce or avoid emissions (e.g. reforestation and direct air capture and storage projects), and trade in both the primary and secondary markets. Carbon credit insurance can help protect buyers, sellers and investors of carbon credits from the numerous risks they face due to the rapid development of the carbon markets, multiple standards and the varied nature of projects.

Why insure carbon credits?

1. 

   Enhances stakeholder confidence in carbon credits

2. 

   Provides increased lending capacity

3. 

   Facilitates financing of carbon projects

4. 

   Balance sheet protection

Insurance solutions for the carbon market

Carbon lender credit non-payment insurance

Basel compliant credit non-payment insurance which can help bank lenders achieve capital relief, through the use of AA-rated Lloyd’s paper.

Non-delivery risk insurance

Cover for the pre-payment amount against subsequent non-delivery of the carbon credits. Policy indemnity can be in the form of carbon credits or financial compensation.

Political risk insurance

Protection against the financial loss of carbon credits resulting from political risks including corresponding adjustment risks.

Post-delivery risk insurance

Financial protection against invalidation of carbon credits, non permanence and reversal events.

EU ETS and FuelEU protect

Protection against risks of non payment and insolvency between counterparties linked to industries operating under compliance market schemes.

Why choose Willis for carbon credit insurance?

At Willis, a WTW business, we bring together expertise from diverse professional backgrounds across a global platform. This enables us to connect you with the right people to support and deliver on your specific objectives, wherever you are based.

• Provider of climate risk solutions across many industries and geographies
• Strategic structuring mindset – we craft tailored solutions, not templates, built around your specific carbon, trading and financing challenges
• Global reach – with on the ground presence in 140 countries, we connect you directly to global markets and decision makers
• Laser focus on providing consistently good service – from initial discussion through to support for claims when required

To find out more about how our carbon credit insurance team can help you manage your carbon credit risks and opportunities, please get in touch.