CFC has launched Carbon Delivery Insurance, a new product that covers non-delivery of carbon credits.  

Same day quoting and binding is available for a buyer purchasing from one of over 300 carbon projects.  

CFC says it is the first policy to cover both the physical and political risks faced by businesses purchasing voluntary carbon credits on a forward basis. Its underwriting model rates the carbon project itself rather than the policyholder, it says, eliminating complex application forms and protracted discussions to quote. 

“By facilitating risk transfer, insurers can drive positive change while getting ahead in a market whose value could exceed $1 trillion by 2050,” CFC Head of Innovation George Beattie said. 

“We’re delivering a product that provides the peace of mind that the voluntary carbon market is looking for.” 

Carbon Delivery Insurance is available through broker distribution channels, and CFC has also partnered with carbon innovation platform IncubEx. 

A CFC survey of over 500 companies found 75% of existing buyers are very concerned about delivery shortfalls, 65% have experienced losses from non-delivery, and 80% were very likely to consider purchasing under-delivery insurance.