Ping An Property & Casualty Insurance has launched its very first ocean carbon sink index insurance policy in the city of Dalian.
This launch follows the firms pilot of its forest carbon sink remote sensing index insurance in 2021.
Ping An P&C noted that the ocean carbon sink index insurance will provide carbon sink risk protection with RMB400,000 for 13.3 mu (8,866.67 square meters) of kelp, shellfish and algae, which will enrich its carbon sink insurance coverage on terrestrial and marine ecosystems, including forests, mangroves and grasslands.
With the ocean being the largest carbon sink on Earth, it can absorb approximately 2 billion tons of carbon dioxide a year from the atmosphere, 50 times the capacity of the atmosphere, as well as 20 times that of terrestrial ecosystem.
The total volume of carbon dioxide absorbed by the ocean annually accounts for around one-third of annual global emissions. But, because of the ever-changing marine climate, marine disasters such as typhoons, abnormal sea temperatures and red tides could potentially compromise the carbon sequestration capacity of the ocean, releasing carbon dioxide into the air again and hindering progress towards carbon neutrality.
Ping An P&C’s ocean carbon sink index insurance in Dalian will be the company’s first step into the field of the ocean carbon sink.
The firm has confirmed that it will provide compensation when specific changes in the marine environment damages local species such as kelp, shellfish and algae and lead to the weakening of carbon sink.
Additionally, the loss compensation can be used for post-disaster marine species rescue to restore the carbon sink resource, as well as ecological protection and restoration.
Jiang Hua, Director of Ping An P&C, commented: “We will continue to develop more agricultural insurance products for ecological and environmental protection, as well as explore different pathways to achieve low-carbon transformation for insurance services. We will fully support the development of carbon sink forests and carbon sink fisheries, providing comprehensive risk protection for carbon sink resources to help China achieve its ‘dual carbon’ goals.”
