Recently, there have been reports indicating that the carbon market has been plagued by misleading information, with even industry leaders being singled out. Last Wednesday, the global carbon trading giant "South Pole" saw its CEO step down after the group withdrew one of the world's largest forest conservation projects in Kariba, Zimbabwe. Earlier this year, the industry benchmark " Verra " certified carbon credits were also criticized as being practically worthless, as the promised carbon offset could not be achieved.
“Everybody wants to claim the receipt of carbon savings, but nobody wants to put their hand up if things go wrong,” said Vipul Shetty, director of energy transition at insurance brokerage Howden. “And when you’re in the business of risk, things go wrong.”
Eco-Business reports where investors see risks in buying carbon credits that might not live up to their promise, insurers are seeing opportunity. A market is developing globally for insurance related to carbon credits.
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