Area characterisation:
Terrestrial
Objective:
Insure carbon credits against invalidation
Financing:
Private
Potential impacts/benefits:
- Protects institutional buyers against carbon credit fraud and negligence
- Increases confidence and integrity in voluntary carbon market
- Supports scaling of reforestation, soil carbon, and blue carbon projects
Actions:
Launched the first voluntary carbon-credit invalidation insurance, covering third-party negligence and fraud across diversified nature-based credit portfolios to boost market confidence and integrity.
Organisations:
Respira International, Howden, Nephila Capital, Parhelion, Sustainable Markets Initiative (Insurance Task Force)
Contacts:
Case study referred by NATURANCE. For more information, please contact: info@naturance.eu.
Respira International, a carbon finance business, partnered with insurance broker Howden and reinsurance investment manager Nephila Capital to launch the first voluntary carbon credit invalidation insurance product. The solution, incubated through the Insurance Task Force of the Sustainable Markets Initiative, provides cover against third-party negligence and fraud for books of independently verified, high-quality carbon credits. By wrapping insurance around diversified portfolios of nature-based carbon credits, including reforestation, forest conservation, soil carbon, and blue carbon projects, the product reduces risk for institutional buyers and corporate purchasers. This added layer of security is designed to increase confidence and integrity in the voluntary carbon market, enabling Respira to scale its climate solution projects and unlock new capital.
Sustainable Development Goals:
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13. Climate action
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15. Life on land