Zurich covers political risk for carbon credits
Zurich Australia is rolling out political risk insurance for companies investing in carbon credit programs in emerging markets.
Senior Underwriting Manager David Anderson says the policy covers a wide range of political interference in developing countries, including expropriation of assets, political violence, currency inconvertibility, non-payment by a government entity and non-honouring of arbitration awards.
“It’s mainly aimed at energy companies and the banks that lend to these companies,” Mr Anderson told insuranceNEWS.com.au. “It’s still new in Australia, but there is interest in the product and we will be looking to aggressively roll it out.”
The policy is geared towards investors in developing countries around the world, from South America to the former Soviet Union, with the exception of countries under international sanctions.
Under the terms of the Kyoto Protocol’s Clean Development Mechanism, companies can gain carbon credits for investing in projects designed to reduce greenhouse gases.
Senior Underwriting Manager David Anderson says the policy covers a wide range of political interference in developing countries, including expropriation of assets, political violence, currency inconvertibility, non-payment by a government entity and non-honouring of arbitration awards.
“It’s mainly aimed at energy companies and the banks that lend to these companies,” Mr Anderson told insuranceNEWS.com.au. “It’s still new in Australia, but there is interest in the product and we will be looking to aggressively roll it out.”
The policy is geared towards investors in developing countries around the world, from South America to the former Soviet Union, with the exception of countries under international sanctions.
Under the terms of the Kyoto Protocol’s Clean Development Mechanism, companies can gain carbon credits for investing in projects designed to reduce greenhouse gases.