New report draws on industry insights to highlight insurance as a catalyst for carbon removal solutions

Our new report, in collaboration with Climeworks, highlights how the insurance sector is uniquely positioned to be a crucial catalyst in solving the climate crisis by backing carbon dioxide removal (CDR) technologies. By leveraging their expertise in de-risking and finance, insurers are uniquely positioned to support both natural and engineered CDR solutions. 

This report synthesises insights from global insurance leaders, showing how this industry can transform climate responsibility into a strategic advantage and also unlock a multi-trillion dollar market opportunity, all while securing a resilient future for the planet. 

The report calls on insurers to deploy existing products to carbon removal developers, innovate new risk solutions, and drive strategic investment - while collaborating across sectors to build a resilient and scalable carbon removal economy.

Three pathways for insurance to shape CDR

1. Providing insurance to accelerate CDR scale up

CDR project developers require conventional property & casualty, commercial, and liability insurance products as they scale up projects with property, plants & equipment

2. Creating innovative new risk transfer products

Delivery risk continues to pose a challenge as the global CDR market matures. However, this dynamic presents an opportunity for insurers to innovate their product suite (e.g., performance guarantees) to address the financial and non-financial aspects of delivery outputs – whether negative emissions, carbon credits, clean energy, or sustainable materials. The nascence of this vertical and its growing market offer new sources of repeatable revenue for direct insurers, lenders and risk transfer specialists

3. Advancing towards net zero

CDR is an important part of the transition suite for insurers’ own emissions as well as those of their clients. Buyers today can also benefit from compelling co-benefits such as supporting biodiversity, renewable energy generation, and revitalising local economies through investing in a diversified portfolio of CDR pathways.