Insurance has always played a key role in commodities, where there is no shortage of asset-level risk. It is surprising then that one environmental commodity in growing demand – carbon offsets – lacks an insurance support system.
Despite frequent criticism that the real environmental impact of offsets is oversold, demand for voluntary carbon credits is growing. The voluntary carbon market (VCM) grew in value to $2 billion in 2021, quadruple the figure for 2020. It is projected to grow to $50 billion by 2030, fuelling enthusiasm in the financial sector for its role in a net-zero economy.
Thanks for your interest in Euromoney!
To unlock this article:
