Tuesday, 17 September 2024.
The Voluntary Carbon Market (VCM) can be a relevant way of attracting the private sector to finance nature conservation and restoration projects.
Towards a robust market and high-quality projects, Aon’s Reinsurance Solutions and Future Climate are working together, making it now possible to take out an insurance policy in the event of natural catastrophes impacting carbon credit projects.
This is what recent press releases from these companies indicate, which you can see below or on LinkedIn, Aon and Future Climate.
According to the press releases, this type of insurance is essential to restore confidence in VCM by buyers of carbon credits, particularly originating from nature-based projects.
Last April we had already announced CFC's Carbon Delivery Insurance policy which, according to the company, would be the first to cover the physical and political risks faced by companies that acquire voluntary carbon credits, covering 100% of the buyer's investment for non-delivery of carbon credits. Remember “CFC launches carbon delivery insurance policy.”
Future Climate is also not new here on our portal.
In August 2022, then Future Carbon, was the protagonist of a merger and acquisition operation in the carbon credits sector, with the purchase of Jataí Capital and Conservação, from Flávio Ojidos.
Then, in June 2023, when it opened an office in London, in the global hub for entrepreneurs in the social and climate areas.
And in February 2024, due to the “Sol do Sertão Renewable Energy Project” in Brazil.
Regarding the partnership with Aon and this insurance in Brazil, the CEO of FutureClimate Group Fábio Galindo commented: “it is super important because it is a tool that helps a lot to build the new carbon market, with guarantees, greater security for investors, attracting more financial flow and more investments for the climate agenda”.
We live in times that require special attention, not only to VCM and from an insurance point of view, but also effective preparation to face climate change.
