Posted 2/21/2024, 11:30:00 AM
Carbon Removal Insurance Emerging to Spur Investments, Mitigate Risks
- Paying carbon removal projects today for future carbon removal is incentivizing needed projects to exist on time
- Risk mitigation tools like ratings and insurance are developing to enable this pre-payment market growth
- Insurance helps mitigate risks like projects under-delivering credits or natural disasters damaging projects
- Increased transparency from tools like insurance will likely improve market efficiency and returns
- Costs will be higher for lower quality projects, steering investment to the best carbon removal operators