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Case Study

Respira – Carbon Credit Insurance

COUNTRY/REGION

Global

START - END DATE

2023 - Ongoing

REALM

Terrestrial

Respira International, a carbon finance business, partnered with insurance broker Howden and reinsurance investment manager Nephila Capital to launch the first voluntary carbon credit invalidation insurance product. The solution, incubated through the Insurance Task Force of the Sustainable Markets Initiative, provides cover against third-party negligence and fraud for books of independently verified, high-quality carbon credits. By wrapping insurance around diversified portfolios of nature-based carbon credits, including reforestation, forest conservation, soil carbon, and blue carbon projects, the product reduces risk for institutional buyers and corporate purchasers. This added layer of security is designed to increase confidence and integrity in the voluntary carbon market, enabling Respira to scale its climate solution projects and unlock new capital.

Insurance trigger type

The mechanism by which an insurance payout or financial response is activated

Indemnity

Insurance scheme target

Beneficiary of Insurance Scheme

Real Economy

Insurance scheme developer

The type of institution(s) providing insurance or guarantees

Private

Insured risk

The primary category of risk addressed or managed by the insurance solution.

Performance and Delivery Risk

Insurance product type

Adapted from UNEP FI framework subcategories

Insurance to de-risk/enable investment in nature

Partners:

Respira International, Howden, Nephila Capital, Parhelion, Sustainable Markets Initiative (Insurance Task Force)

Referred by:

NATURANCE