Reinsurance News

Aon announces partnership with Revalue Nature

23rd September 2022 - Author: Kassandra Jimenez-Sanchez

Collaboration between re/insurance broker Aon and Revalue Nature, a next-generation developer of nature-based solutions, will scale the development of high-integrity, nature-based carbon credits to meet growing demand, the broker stated in a recent announcement.

This partnership aims to encourage innovation in insurance for nature-based solutions and help deliver climate mitigation benefits, improve biodiversity and benefit local communities, in alignment with the Paris Agreement, Aon noted.

Natalia Moudrak, climate resiliency leader for Aon’s Public Sector Partnership, said: “The voluntary carbon market is rapidly expanding and represents a significant opportunity to drive environmental and social impacts on the climate transition through collaborative solutions – no one can transition alone.”

Global voluntary carbon markets, where carbon credits that represent certified removals or reductions of greenhouse gases in the atmosphere are bought and sold, continue to grow, driven by public and private sector commitments to net zero goals, Aon explained.

Voluntary market carbon credit sales totalled $2 billion in 2021 and are projected to reach $50 billion by 2030, according to the Institute of International Finance.

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Currently, voluntary carbon markets are not regulated by governments and carbon project developers, as well as communities, buyers, sellers, lenders and investors, can be exposed to many risks, Aon highlighted.

Revalue Nature designs and develops nature-based projects globally, protecting and regenerating forests, mangroves and other natural assets to produce future carbon credits and meet increasing demand.

Aon said that it is collaborating with Revalue Nature to help attract potential investors to these opportunities and to offer innovative insurance solutions to projects and their stakeholders to aid in de-risking these assets from damage and destruction due to natural perils and other pertinent risks.

According to the announcement, carbon credits from Revalue Nature will be generated through nature-based conservation and restoration projects spanning Africa, Latin America and Asia-Pacific.

Joe Monaghan, CEO for Aon’s Public Sector Partnership, said: “As the demand for high-quality carbon credits increases, there is an underserved market that requires both risk management and financing solutions.

“Our market insights, analytics and risk transfer solutions, coupled with Revalue Nature’s nature-based carbon projects and climate expertise, can help enable organisations to make better decisions as they work toward net-zero transition.”

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