goodcarbon and Swiss Re Corporate Solutions launch first-of-its-kind insurance for carbon credit forwards

• For the first time an insurance offers in-kind replacements for carbon credit forwards
• Carbon credits with delivery dates up to 5 years in the future can be insured
• The product is expected to significantly ease the flow of capital into nature-based carbon credit projects

Sign-up for webinar to learn more

De-risking forward purchases – insured Nature-based Solutions

Thursday, 5th September at 13.00 CEST

Register Now!

Berlin/Zurich, 18 JULY, 2024. Swiss Re Corporate Solutions, the commercial insurance arm of Swiss Re Group, and goodcarbon, the Berlin-based climate start-up, launched the first insurance for long-term carbon credit purchases that offers in-kind replacements of insured credits. Beyond providing access to a high-quality carbon credit supply, the insurance also eases the flow of capital into nature-based projects benefiting critical ecosystems and vulnerable communities.

Funding for nature-based solutions needs to almost triple to USD ~550 billion per year by 2030 to meet the Rio targets on limiting climate warming to 1.5°C and achieve the Global Biodiversity Framework target to set aside 30 per cent of land and sea by 2030. At the same time companies must deliver on their future climate targets and face increasing prices and a shortage in high-quality carbon credit supply. By investing into forward credits companies could secure volume and lock in prices but face a non-delivery risk which slows down broad adoption.

Swiss Re Corporate Solutions and goodcarbon have jointly developed an insurance which allows companies to build 5-year forward looking carbon credit portfolios on a global scale. A forward carbon insurance can play a pivotal role in developing a liquid forward market. The insurance transfers risk and increases trust in forward credits, offering a solution to channel capital into impactful projects through the sale of insured carbon forwards.

goodcarbon co-founder and Managing Director Jerome Cochet says: “This partnership addresses a critical roadblock in the voluntary carbon market. It will add liquidity to the forward carbon market and has the potential to unlock much needed private capital to flow into nature based projects. We’re excited to partner with Swiss Re to bring this offering to the market.”

Lasse Wallquist, Head Sustainability, Swiss Re Corporate Solutions, says: “As a sign of Swiss Re’s innovation power, this new insurance product focuses on de-risking long-term carbon credit purchase agreements. By transferring the non-delivery risk of such contracts through its partnership with goodcarbon, Swiss Re helps clients increase the resilience of their climate transition plans.”

Swiss Re Corporate Solutions and goodcarbon forward insurance for carbon credits from nature-based solutions insures the non-delivery risk of forward purchases due to political risks, natural catastrophe and weather risks. The insured forward credits will initially be available forafforestation and reforestation projects and will include deliveries of up to 5 years into the future.

Every project will place a small percentage of credits into a buffer pool. In case of non-delivery, companies receive in-kind replacement credits from a central buffer pool. This is a first-of-its-kind in the carbon insurance market. Should the buffer pool not hold sufficient credits, Swiss Re Corporate Solutions will compensate the purchase price.

About goodcarbon

goodcarbon creates partnerships that enable all companies to confidently reach their nature and climate goals while channeling billions of dollars into protecting and restoring nature. The

Berlin-based startup helps companies to build carbon credit portfolios that deliver multiple and verifiable impacts towards their nature, climate and sustainability goals. goodcarbon’s long-term partnerships with projects enable interaction, understanding and influence, while delivering quantifiable, measurable impacts. Its proprietary science-based, evidence-backed and practically-proven insights create a new standard in carbon credit due diligence. The end-to-end solutions remove risk, provide finance and make it easy to build a long-term global portfolio.

About Swiss Re Corporate Solutions

Swiss Re Corporate Solutions provides risk transfer solutions to large and mid-sized corporations around the world. Its innovative, highly customised products and standard insurance covers help to make businesses more resilient, while its industry-leading claims service provides additional peace of mind. Swiss Re Corporate Solutions serves clients from over 50 offices worldwide and is backed by the financial strength of the Swiss Re Group.