We insure carbon removal credits generated through technologies such as direct air capture and carbon capture, utilization and storage. Using our balance sheet of high-quality removal credits, we will provide compensation for producers of technology-related credits – or the purchasers of these credits – should machines break down or reversals occur.
This is currently just a small portion of the carbon removal market, in part because even the most promising technologies are limited in scale. Interruption insurance should, however, help attract investment to a potentially important piece of the net zero puzzle.
There are also several examples of unintended emissions in industry, for example when carbon captured as part of blue hydrogen production is accidentally emitted, turning it back to grey hydrogen, or in shipping, when a ship is forced to reroute and therefore incurs greater emissions than expected. There are many more such examples that we will underwrite to protect against accidental emissions.
Our in-kind Unintended Emissions Insurance payments are sourced from high quality carbon removals projects where we are insuring engineered carbon removals projects. As with our Carbon Shortfall and Reversal Insurance contracts, Unintended Emissions Insurance payouts are then in removal credits that are additional, measurable, verifiable, and permanent. In regulated markets, we will determine the equivalent credit to be used to replace additional tons of CO2 emitted.