Swiss Re Corporate Solutions, the commercial insurance arm of Swiss Re Group, and Berlin-based climate start-up goodcarbon have launched insurance for long-term carbon credit purchases that offers in-kind replacements of insured credits.
This new insurance product will reportedly allow companies to build 5-year forward-looking carbon credit portfolios on a global scale.
“A forward carbon insurance can play a pivotal role in developing a liquid forward market. The insurance transfers risk and increases trust in forward credits, offering a solution to channel capital into impactful projects through the sale of insured carbon forwards,” goodcarbon explained.
Beyond providing access to a high-quality carbon credit supply, the insurance will also reportedly ease the flow of capital into nature-based projects benefiting critical ecosystems and vulnerable communities.
goodcarbon co-founder and Managing Director Jerome Cochet commented, “This partnership addresses a critical roadblock in the voluntary carbon market.
“It will add liquidity to the forward carbon market and has the potential to unlock much-needed private capital to flow into nature-based projects. We’re excited to partner with Swiss Re to bring this offering to the market.”
Lasse Wallquist, Head Sustainability, Swiss Re Corporate Solutions, says: “As a sign of Swiss Re’s innovation power, this new insurance product focuses on de-risking long-term carbon credit purchase agreements.
“By transferring the non-delivery risk of such contracts through its partnership with goodcarbon, Swiss Re helps clients increase the resilience of their climate transition plans.”
