International insurance coverage middleman group Howden has positioned the primary carbon credit Guarantee and Indemnity (W&I) insurance coverage coverage, marking a big growth within the voluntary carbon market.
This coverage supplies cowl for the sale of carbon credit generated by Mere Plantations’ reafforestation challenge for degraded forest lands in Ghana, West Africa.
Headquartered within the UK, Mere Plantations owns and operates a teak plantation in Ghana and “has been underwritten by a number one managing basic agent (MGA)”.
The introduction of the W&I coverage is aimed toward enhancing the belief and perceived high quality of carbon credit.
This Carbon Credit W&I coverage goals to catalyse funding into the carbon market by making certain the integrity and worth of the credit.
With this coverage, Mere Plantations can guarantee consumers that their credit adhere to the required requirements of environmental, social, and monetary due diligence, and that their provenance is insured.
Entry probably the most complete Firm Profiles
available on the market, powered by GlobalData. Save hours of analysis. Acquire aggressive edge.
Firm Profile – free
pattern
Thanks!
Your obtain electronic mail will arrive shortly
We’re assured in regards to the
distinctive
high quality of our Firm Profiles. Nonetheless, we would like you to take advantage of
helpful
determination for your enterprise, so we provide a free pattern that you would be able to obtain by
submitting the beneath type
By GlobalData
As well as, the coverage permits challenge builders to leverage the merger and acquisition insurance coverage market’s underwriting experience, offering confidence within the carbon credit score initiatives’ methodology and execution.
Howden says that consumers are buying the credit at a premium relative to different reforestation initiatives because of the added safety and the “prime quality” of the credit, with British logistics firm Uniserve being the primary purchaser.
Uniserve group chief business and working officer Gary Cobbing mentioned: “The transparency and assurance afforded by the extra insurance coverage coverage additional boosts our confidence on this partnership and we sit up for witnessing the influence this growth has on the carbon market.”
Howden’s earlier carbon market ventures embrace the launch of the primary voluntary carbon credit score insurance coverage product in 2022 and the roll-out of an insurance coverage product in January 2024 that covers carbon dioxide leakage from carbon seize and storage services.
Howden Carbon Insurance coverage head Charlie Pool mentioned: “With insurance coverage guaranteeing the credibility of carbon credit, this product will guarantee credit appeal to a better worth and encourage additional challenge growth.
“By addressing the shortage of belief and transparency, this revolutionary coverage introduces a much-needed structural enchancment and represents a big step ahead on behalf of shoppers.”
