Carbon Credits
What is Carbon Credit Insurance?
Carbon Credit Insurance is a specialised risk management solution designed to protect stakeholders in the carbon market such as project developers, investors, lenders, buyers and sellers against potential financial losses associated with carbon credit transactions. This insurance covers risks including non-delivery, invalidation, political instability, natural catastrophes and other unforeseen events that may compromise the integrity or value of carbon credits. By mitigating these risks, Carbon Credit Insurance enhances confidence and stability within the carbon market, facilitating investment in projects aimed at reducing or removing greenhouse gas emissions.
Traditional insurance markets frequently exclude individuals and organisations working on pioneering environmental solutions. This exclusion creates systemic barriers to societal improvement. At Sustain Insurance Brokers, we directly bridge this gap, ensuring that these entities are no longer marginalised by traditional risk assessment models.
Carbon Credit Insurance
To learn more about how our commercial insurance advisory services can help you protect your carbon credit investments, please fill out the form below and one of our representatives will be in touch with you shortly.
Why Insure Carbon Credits?
Insuring carbon credits is essential due to the complex and evolving nature of carbon markets, which are susceptible to various risks:
- Project Performance Risks: Unforeseen events such as natural disasters or project failures can lead to non-delivery or reversal of carbon credits.
- Political Risks: Changes in government policies or political instability can invalidate or devalue carbon credits.
- Market Risks: Fluctuations in market dynamics and verification standards can impact the value and acceptance of carbon credits.
Benefits of Using Carbon Credits:
Mitigating risks makes projects more attractive to investors and stakeholders.
Safeguarding against potential losses provides financial security and peace of mind.
Insurance adds a layer of credibility, encouraging broader participation in carbon markets.
Insurance Solutions for the Carbon Market:
Various insurance products have been developed to address the specific needs of the carbon market:
- Ex Ante Carbon Delivery Insurance: Protects against non-delivery of carbon credits in forward purchase agreements.
- Carbon Lender Non-Payment Insurance: Safeguards lenders against non-repayment of loans due to project underperformance.
- Ex Post Carbon Credit Cancellation Insurance: Provides coverage for the cancellation or invalidation of carbon credits after purchase.
- Political Risk Insurance: Offers protection against losses resulting from political events that may affect the validity of carbon credits.
- Natural Catastrophe Insurance: Covers risks related to natural disasters that could impact cars.
Speak to our Carbon Credit
Advisor
We understand the importance of having easy and accessible ways to get in touch with us. That’s why we’re excited to offer you a way to connect directly with our Senior Team quickly and conveniently.
Jonathan Evans
Founder & Senior Insurance Practitioner
Why Choose Sustain Insurance Brokers?
At Sustain Insurance Brokers, we are committed to providing bespoke insurance solutions that align with your organisation’s environmental, so and governance (ESG) objectives.
- Bespoke Coverage: We understand the unique risks associated with carbon credit transactions and offer personalised insurance solutions to meet your specific needs.
- Partner with Sustain to navigate the complexities of the carbon market confidently, knowing that your investments in carbon credits are well-protected.
