With climate change targets taking precedence around the world, businesses using carbon credits to support their environmental commitments face complex risks.
Carbon credit insurance
As climate change unfolds and carbon markets expand, mitigating your risk is essential.
Robust, reliable protection
With climate change targets taking precedence around the world, businesses using carbon credits to support their environmental commitments face complex risks. Carbon credits enable the removal, reduction or avoidance of carbon emissions from the atmosphere. Whether you’re a project developer, lender, investor, buyer or seller of carbon credits, navigate this landscape with a tailored insurance solution designed to protect you at every stage of your journey.
Cover that goes all the way
From changing market dynamics to government policy, natural catastrophe and varying verification standards, your challenges are substantial. Our dedicated specialists are here to help you manage them – with an insurance strategy that puts your business first.
Why insure carbon credits?
Risk management
Protect your carbon credit investments against project failures and market uncertainties.
Better financing options
Make your projects more appealing to lenders and investors by reducing your risks through insurance.
Increase funding opportunities
Secure more funding for emission reduction projects by giving investors the peace of mind that you’re insured.
Our insurance solutions
Ex Ante Carbon Delivery Insurance:
Cover the forward purchase of your carbon credits for protection against non-delivery from any cause.
Carbon Lender Non-Payment Insurance:
Protect loans to carbon project developers against non-repayment due to project performance failure for any reason.
Ex Post Carbon Credit Cancellation Insurance:
Protect the purchase of your carbon credits to mitigate the risk of cancellation or invalidation from any cause.
Corresponding Adjustment Protection
Insurance for voluntary carbon credits sold with Article 6 authorization.
Buffer Depletion Protection Cover
A creditworthy protective wrap against depletion of the buffer pool which acts as a backstop against unexpected loss and security to counterparties.
Why Lockton?
Our insurance solutions can cover your business for multiple years to align with your timeline and goals
Coverage limits are designed to protect substantial investments in carbon-related business
The underwriting focuses on project quality, using careful selection criteria
Our solutions are tailored to meet your unique circumstances and specific needs
Benefits
Provides contract certainty and financial protection for carbon credit transactions
Offers additional quality assurance for carbon projects
Transferring credit risk to insurers may provide capital relief for lenders
Helps drive liquidity to high-integrityprojects, benefiting the broader carbon market
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Our carbon credits insurance contact
David Briscoe
Head of Special Projects – P&C Specialties
david.briscoe@lockton.com
+44 755 433 8553
Get in touch
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We bring creative thinking and an entrepreneurial spirit to the insurance business and are uniquely positioned to help you succeed.
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