Swiss Re has introduced a triple-digit internal carbon levy of $US100 ($137) per tonne of carbon dioxide (CO2) to support transition to a low-carbon economy and net-zero emissions in its operations by 2030.

The reinsurer says it is the first multinational company to announce a triple-digit real carbon levy on both direct and indirect operational emissions, such as business travel.

Swiss Re says it will not go back to pre-COVID-19 levels in order to meet a new CO2 reduction target of 30% in 2021 versus 2018 levels.

“Leading companies can and must propel climate protection beyond mere compliance with current regulations”, Group CEO Christian Mumenthaler said.

The levy will fund compensation of emissions with high-quality carbon removal projects.

Starting in January next year, Swiss Re’s internal carbon levy will increase from the current $US8 ($10.93) to $US100 and gradually double again by 2030.

The 10-year carbon levy scheme will “fund the cost of CO2 removal services from “impactful, durable and scalable carbon removal projects”.

To limit global warming to well below 2°C in accordance with the Paris Agreement, climate science predicts the need for billions of tonnes of CO2 to be annually removed and stored until 2050 and beyond.

Swiss Re says the insurance industry can play a pivotal role through sustainable operations, risk knowledge, risk transfer solutions and investments.