CFC has launched a new insurance solution for buyers of voluntary carbon credits.
Carbon Cancellation Insurance is designed to safeguard purchased carbon credits from financial and management risks in the event of cancellation or invalidation resulting from political risks.

Buyers are also protected from revocation of Article 6 transfer eligibility, as well as loss of eligibility under the Carbon Offsetting and Reduction Scheme for International Aviation, CORSIA. The cover provides for 100 percent of the purchaser’s investment, and also offers adverse media and crisis management support arising from a project invalidation event.

“While more and more businesses invest in the voluntary carbon market as part of their efforts to offset their carbon footprints, their stakeholders are looking for financial certainty on these investments,” said George Beattie, head of innovation at CFC. “Our new Carbon Cancellation insurance delivers that certainty and represents a further step forward by the insurance industry to facilitate risk transfer in order to help galvanise quality growth in the voluntary carbon market.

“Together with our ground-breaking Carbon Delivery insurance product launched in March this year, CFC is the first insurer to offer both a delivery and cancellation insurance product to buyers of voluntary carbon credits. This means we are supporting both forward financing of prestigious carbon projects and the risks associated with issued credits purchased and retired by companies in pursuit of net zero.”


Image: CCS (carbon capture and storage) facilities capture carbon dioxide emissions from industrial processes and power plants, securely storing them underground to mitigate climate change.

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