Isometric has launched an insurance framework designed to support reforestation projects in reducing the proportion of carbon removal certificates they must contribute to buffer pools.

Buffer pools hold reserves to cover potential reversals of carbon removal caused by events such as fire or disease. The new framework allows developers to use insurance in place of part of these contributions, potentially improving cash flow during the early years of a project, when costs can place pressure on finances.

Artio, CarbonPool, CFC, Kita and Oka have been approved under the framework, which was co-developed with Marsh.

Lukas May, chief commercial officer at Isometric, said: “Reforestation developers now have the option to reduce their buffer pool contributions. 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, vice-president of finance at reforestation 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.”

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