Howden has been appointed by sustainability certification body, Gold Standard, to approve insurance policies that support the eligibility of carbon credits for the Carbon Offsetting and Reduction Scheme for International Aviation.

The new insurance assessment process will provide carbon offset project developers with access to a wider pool of insurance products, to support the eligibility of credits for use under CORSIA’s first phase, covering 2024 to 2026.

Howden will serve in an independent role overseeing the insurance policy approval process, ensuring these policies comply with strict criteria set by the standard. This will support the establishment of a list of approved insurance policies, which project developers can use to insure against political risks associated with carbon credits.

Howden’s head of carbon markets, climate risk and resilience, Charlie Pool, said the collaboration is an example of how embedded insurance enhances carbon market integrity.

“The new insurance process will also allow more institutional capital, which was previously held back, to flow into the market, setting an exciting precedent that can be replicated elsewhere to unlock the full potential of carbon markets,” he noted.

Margaret Kim, CEO, Gold Standard, added: “To enable climate action for people and nature, we need to broaden access to new and growing markets, including CORSIA. By recognising insurance policies through a rigorous assessment process and allowing their use to address political risk, we can enable more projects to supply credits for CORSIA's first phase, in a way that is credible, reliable and based on solid foundations.”

CORSIA was adopted by the International Civil Aviation Organisation in 2016, and requires aircraft operators to offset the growth in international aviation emissions above a baseline. It applies to international flights between participating countries, covering most commercial airlines operating globally.

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