Global insurance intermediary group Howden has placed the first carbon credits Warranty and Indemnity (W&I) insurance policy, marking a significant development in the voluntary carbon market.
This policy provides cover for the sale of carbon credits generated by Mere Plantations’ reafforestation project for degraded forest lands in Ghana, West Africa.
Go deeper with GlobalData
Headquartered in the UK, Mere Plantations owns and operates a teak plantation in Ghana and “has been underwritten by a leading managing general agent (MGA)”.
The introduction of the W&I policy is aimed at enhancing the trust and perceived quality of carbon credits.
This Carbon Credits W&I policy aims to catalyse investment into the carbon market by ensuring the integrity and value of the credits.
With this policy, Mere Plantations can assure buyers that their credits adhere to the required standards of environmental, social, and financial due diligence, and that their provenance is insured.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataIn addition, the policy enables project developers to leverage the merger and acquisition insurance market’s underwriting expertise, providing confidence in the carbon credit projects’ methodology and execution.
Howden says that buyers are purchasing the credits at a premium relative to other reforestation projects as a result of the added protection and the “high quality” of the credits, with British logistics company Uniserve being the first buyer.
Uniserve group chief commercial and operating officer Gary Cobbing said: “The transparency and assurance afforded by the additional insurance policy further boosts our confidence in this partnership and we look forward to witnessing the impact this development has on the carbon market.”
Howden’s previous carbon market ventures include the launch of the first voluntary carbon credit insurance product in 2022 and the roll-out of an insurance product in January 2024 that covers carbon dioxide leakage from carbon capture and storage facilities.
Howden Carbon Insurance head Charlie Pool said: “With insurance guaranteeing the credibility of carbon credits, this product will ensure credits attract a higher value and encourage further project development.
“By addressing the lack of trust and transparency, this innovative policy introduces a much-needed structural improvement and represents a significant step forward on behalf of clients.”
