Conservation International has partnered with Swiss Re to explore insurance as an alternative to buffer credit requirements in blue carbon markets. Blue carbon systems, including mangroves, seagrasses and salt marshes, are the Earth’s most carbon-dense ecosystems, with carbon credits serving as a finance mechanism for coastal conservation/restoration.
Current certification processes require projects to allocate buffer credits to cover non-permanent risks, reducing tradeable credits and project funding.
The proposed insurance covers loss/damage to assets such as mangroves from natural and weather-related events that reduce carbon benefits, potentially removing the need for buffer credits related to those specific risks. Project proponents would pay a premium ideally lower than the equivalent buffer credit value, with the difference unlocking greater finance for projects while allowing more credits to enter the market.
