UK-based Howden Broking Group Ltd. said on Tuesday that it has developed coverage to protect against third-party negligence and fraud in the voluntary carbon credit market.
Howden partnered with coal finance firm Respira International and investment manager Nephila Capital to develop the cover, which a Howden spokesman said will be written to limits of up to 2% of cover written on underlying risks. The product will be wrapped around books of independently verified, high-quality carbon credits, the broker said.
“For the voluntary carbon market to grow by $50 billion by 2030, buyers must be able to trust that the carbon credits they buy will remove the promised volume of carbon from the atmosphere,”
; Charlie Langsdale, head of climate risk and resilience at Howden, said in a statement.Nephila’s Lloyd’s of London Syndicate 2357 is the market leader in coverage. Capacity of $100 million will be available in the first year, rising to $500 million in the second year, according to Howden’s spokesman.
Howden said the coverage should help boost confidence in the voluntary carbon market, which needs to implement processes to improve credibility and transparency.
Source link
