UK-based insurance coverage firm Howden has launched an insurance coverage facility to cowl carbon dioxide (CO₂) leakage from commercial-scale CCS amenities.
Reputed to be the primary of its variety, the brand new providing is alleged to drive the shift in direction of net-zero emissions.
The insurance coverage product, developed by Howden and led by SCOR’s syndicate at Lloyd’s, presents protection for environmental injury and income loss ensuing from each surprising and gradual CO₂ leakage from CCS initiatives into the air, land and water.
This insurance coverage answer performs a important position in supporting the mitigation of the dangers linked to CCS know-how.
Moreover, the power is predicted to assist within the emergence of a devoted insurance coverage marketplace for leakage dangers.
This particular want was outlined by the UK Authorities Division for Power Safety & Internet Zero in its Enterprise Mannequin for Carbon Seize, Utilization and Storage.
Entry probably the most complete Firm Profiles
available on the market, powered by GlobalData. Save hours of analysis. Achieve aggressive edge.
Firm Profile – free
Your obtain e-mail will arrive shortly
We’re assured in regards to the
high quality of our Firm Profiles. Nonetheless, we would like you to take advantage of
choice for your enterprise, so we provide a free pattern that you may obtain by
submitting the under type
A number of markets inside Lloyd’s have pledged help for the power, with expectations of extra capability to fulfill international business demand.
Howden Local weather Threat & Resilience govt director Glenn O’Halloran will spearhead the initiative.
CCS initiatives’ monetary feasibility usually hinges on revenues derived from voluntary and compliance carbon markets, acknowledged Howden.
This new insurance coverage providing safeguards towards liabilities linked to carbon credit and allowances, encompassing UK and EU Emissions Buying and selling System liabilities.
Howden’s introduction of this insurance coverage facility follows the 2022 launch of the world’s first carbon credit score invalidation insurance coverage answer.
Howden Local weather Threat and Resilience CEO Rowan Douglas mentioned: “This breakthrough reveals how insurance coverage helps unlock very important finance to drive the net-zero transition on the scope and pace required.
“By enhancing the bankability of important CCS initiatives, we’re establishing insurance coverage as a pressure for good and constructing on the work being achieved by the Sustainable Markets Initiative (SMI) to grasp the potential of engineered carbon elimination options and transfer this nascent sector into the mainstream.”
The most recent improvement comes shortly after the corporate’s acquisition of Scottish private and business traces dealer Laurie Ross, which considerably strengthened its excessive avenue presence.