Isometric, the certifier for the industrial economy, has launched a new insurance framework, co-developed with Marsh, that helps reforestation projects improve their economics by enabling developers to use insurance to reduce their buffer pool contributions.
Buffer pools are reserves of carbon removal certificates that projects contribute to as a safeguard against reversals caused by events such as fire or disease, so that any losses can be covered without affecting the certificates already delivered to buyers.
Substituting a portion of the buffer pool contribution with insurance allows project developers to unlock valuable early-stage revenue when project economics are most constrained.
Under this newly approved framework, insurers including Artio, CarbonPool, CFC, Kita, and Oka are now able to offer insurance to reforestation projects certified by Isometric.
“Reforestation developers now have the option to reduce their buffer pool contributions,” said Lukas May, Chief Commercial Officer at Isometric. “We’ve worked with Marsh to build a framework that gives developers more flexibility when the economics matter most, without compromising on the safeguards that ensure every certificate buyers retire represents a tonne of carbon removed from the atmosphere.”
Bruno Figueiredo, VP of Finance at reforestation project developer Mombak, commented: “This initiative led by Isometric is an important step toward a more mature carbon market, bringing proven risk-management solutions from established markets into the industry. Insurance has the potential to provide buyers with greater certainty and predictability while enabling a more efficient approach to managing reversal risk.”
Hema Mistry, CEO, FINPRO UK, Marsh Risk, said: “We are pleased to have supported Isometric in developing this insurance requirements framework, an important step forward that sets a clear pathway for using insurance alongside buffer mechanisms. This framework is part of Marsh’s strategy to embed carbon insurance into core carbon market infrastructure—helping project developers scale high-quality projects while giving buyers, lenders, and investors greater confidence in the market as a whole.”
Participating project developers can secure insurance that meets Isometric’s requirements, and additional insurance providers not included in this initial list can apply to be added over time.
