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Insurance for carbon credit forwards

Insurance for long-term carbon credit purchases that offers in-kind replacements in case of defaults of carbon credit sellers. A solution that helps companies secure their future carbon credit supply by insuring the provision of global carbon credits from afforestation, reforestation and revegetation projects with delivery dates up to five years in the future. The insurance of non-delivery due to natural catastrophes, weather events, and certain political risks aims to enhance confidence for carbon credit buyers in the purchase of credits on a forward contract basis and attract more private investment in nature-based climate solutions especially where there is a lag between investment and experiencing benefits.

Furthermore, by strengthening the financial trust in carbon credits acquired on a forward contract basis, the product allows the transition of activities in adopting nature-positive carbon mitigation approaches that otherwise may have been deemed as too risky.

Start - End Date
2024-ongoing
Country/Region
Global
Realm
Terrestrial

Project details

Spatial Scale

Local

Insurance Trigger Types

Indemnity

Insured Risks

Performance and Delivery Risk


Insurance Scheme Targets

Private - Investors

Insurance Scheme Developer Types

Private

Insurance Product Types

Insurance for risks arising from the transition of existing activities and value chains

Partners

SwissRE, Good Carbon

Referred by

UNEP FI

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