According to Broker Howden Group, it has helped create the world's first insurance against fraud and negligence in voluntary carbon-market credits, part of efforts to scale up the nascent industry. Carbon credit trading turnover was around USD2bn in 2021, but consultants McKinsey suggest it could be worth more than USD50bn a year by 2030, as companies and countries look to offset some of their emissions on the way to net-zero. However, with the market unregulated and amid concerns about the quality of some of the credits being sold, many companies have been reluctant to spend millions of dollars on credits for fear of being misled. To help speed up the growth of the industry, Howden - which manages premiums of more than USD10bn - said it had teamed up with carbon finance firm Respira International and reinsurance investor Nephila Capital to provide cover for third-party negligence and fraud, reducing the potential reputational risk of buying carbon credits

Source: Reuters