CFC, the specialist insurance provider, pioneer in emerging risk and market leader in cyber, today announced its second insurance solution for buyers of voluntary carbon credits.
CFC’s new Carbon Cancellation Insurance safeguards purchased carbon credits from financial and management risks in the event of cancellation or invalidation resulting from political risks like regulatory change and weather events impacting carbon projects.
In addition, buyers are also protected from revocation of Article 6 transfer eligibility, as well as loss of eligibility under the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
It provides coverage for 100 percent of the purchaser’s investment and also provides adverse media and crisis management support arising from a project invalidation event.
While more and more businesses invest in the voluntary carbon market as part of their efforts to offset their carbon footprints, their stakeholders are looking for financial certainty on these investments. George Beattie, Head of Innovation, CFC
“Our new Carbon Cancellation insurance delivers that certainty and represents a further step forward by the insurance industry to facilitate risk transfer in order to help galvanise quality growth in the voluntary carbon market.”
This launch comes hot on the heels of the introduction of CFC’s innovative new Carbon Delivery Insurance, the first to cover both the physical and political risks faced by businesses purchasing voluntary carbon credits on a forward basis.
“Together with our ground-breaking Carbon Delivery insurance product launched in March this year, CFC is the first insurer to offer both a delivery and cancellation insurance product to buyers of voluntary carbon credits,” said Beattie. “This means we are supporting both forward financing of prestigious carbon projects and the risks associated with issued credits purchased and retired by companies in pursuit of net zero.”
Read more about CFC’s carbon insurance solutions here.
Download CFC’s in-depth report “An unmissable opportunity in the carbon market” to read CFC’s view on why the insurance industry’s involvement is key to driving growth and sustainability of the voluntary carbon credit market.
