A new kind of insurance has been launched to protect investments in nature. Go Balance, AMI Specialty, and CFC have teamed up to create advanced coverage for natural capital credits. This move helps businesses and investors who support eco-friendly projects like reforestation and wetland restoration.
Natural capital credits work like carbon offsets. Companies buy them to balance their environmental impact. For example, a business might fund tree planting to offset its carbon emissions. But what if wildfires or storms destroy those trees? Until now, there was no insurance to cover such risks.
The new insurance solution changes that. It safeguards investments in natural assets. If disasters strike, policyholders get financial protection. This makes eco-projects more secure, encouraging more companies to invest in green initiatives.
Go Balance, a leader in sustainability, developed the concept. AMI Specialty and CFC, both experts in specialty insurance, designed the policies. Their partnership ensures reliable coverage for unpredictable natural events.
This innovation is a big step for environmental finance. It reduces risks for investors and supports global conservation efforts. With climate change increasing extreme weather, such protection is more important than ever.
Experts say this insurance could boost the natural capital market. More businesses may now feel confident funding projects that protect forests, oceans, and wildlife. The goal is to make sustainability both profitable and safe.
The insurance is already available in key markets. Companies involved in carbon offsetting and ecological restoration are expected to be early adopters. As demand grows, more insurers may join this emerging field.
This development highlights how finance and nature can work together. By protecting natural capital, the insurance helps fight climate change while supporting responsible business growth.
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