CFC has secured approval to offer insurance policies that provide cover for carbon credits issued as part of the Carbon Offsetting and Reduction Scheme for International Aviation. The CORSIA initiative seeks to reduce the impact of carbon emissions from international flights.

CFC said its insurance covered the risk that corresponding adjustments, which are an accounting mechanism to ensure carbon credits are only counted against one target when transferred internationally, were not applied correctly.

George Beattie, head of innovation at CFC, said: “CFC is extending its leadership in carbon insurance by delivering yet another insurance industry first – this time providing critical compulsory insurance to projects looking to provide supply to the CORSIA scheme.”

He added: “I truly believe this initiative will act as a litmus test and we will see similar schemes rolled out across other industry sectors in the years ahead as the climate crisis continues to worsen.”