CFC has teamed up with Standard Chartered to create an insurance product that provides cover for the risks associated with providing debt financing to carbon credit projects. CFC said it was now focusing on bringing the lender insurance product to more banking institutions to enable them to provide commercial loans to carbon credit projects.
George Beattie, head of innovation at CFC, said: “The International Monetary Fund estimates that the world needs to invest in the region of $2 trillion annually by 2030 if it is to reach its goal of net zero by 2050. Governments simply don’t have this type of money readily available and it is clear that the private sector is going to play the most vital role.
“This creates the single biggest lending opportunity for banks and other financial institutions in history, and we believe that insurance can and must play an essential role in helping these institutions to derisk their financing activities directed at high quality carbon initiatives.”
Chris Leeds, head of carbon markets development at Standard Chartered Bank, added: “This is a great example of how lending institutions and the insurance industry can combine the best of their commercial and innovative skills to facilitate greater investment in the nascent carbon dioxide removals market by the private sector and help our planet reach net zero by 2050.”
YOU MIGHT ALSO LIKE