Cercarbono and Howden forge alliance to Carbon Credits Warranty and Indemnity (W&I) insurance offerings in AFOLU projects.

Cercarbono, a leader in carbon certification, continues to innovate in sustainable finance with a strategic expansion of its groundbreaking Carbon Credits Warranty and Indemnity (W&I) insurance offerings. Following the success of the inaugural policy with Mere Plantations, Cercarbono announces a significant memorandum of understanding with Howden, the esteemed global insurance intermediary group. This collaboration makes a significant step forward in bolstering confidence across the voluntary carbon market (VCM) and was negotiated on Cercarbono's behalf by Climate Law Ltd.

The initial insurance policy, which secured carbon credits from Mere Plantations’ reafforestation project in Ghana, set a precedent for reliability and risk mitigation in carbon credit transactions. It assured buyers of the legitimacy and integrity of credits, underlining Cercarbono’s commitment to stringent environmental standards and transparency.

Alex Saer, CEO of Cercarbono, emphasizes the alliance’s significance: “Our collaboration with Howden represents a milestone in advancing sustainable finance. By extending our insurance offerings beyond our inaugural project and to suitable candidate projects, we are enhancing market confidence and fostering greater investment in sustainable climate solutions globally. With Howden’s support, we are empowering more projects to provide verifiable climate impacts and uphold the highest standards of environmental integrity. This partnership reinforces our dedication to transparency and credibility in carbon markets.”

Under this memorandum of understanding, Howden will leverage its expertise in underwriting and risk management to offer tailored W&I insurance products for Cercarbono’s portfolio of registered projects. These products will validate the rights, compliance, and verification of carbon credits, ensuring they meet rigorous environmental and regulatory criteria.

Commenting on the collaboration, a representative from Howden present at the ITEA Latin America Climate Summit stated: “In the evolving landscape of carbon credit markets, confidence is paramount. Tailored insurance products like our W&I offerings are designed to bolster this confidence by meticulously safeguarding the integrity of transactions. The policy does so by providing protection to the buyer relating to the promises made by the seller at the point of sale. Further, that insurance protection will, subject to terms, follow the credit through any future sales prior to retirement. By providing assurance tailored to the specific risks and complexities of carbon credit projects, we aim to foster trust

and stability, supporting genuine sustainability initiatives worldwide.”

The demand for high-caliber environmental assets continues to grow. This alliance between Cercarbono and Howden not only supports this growing demand but also strengthens environmental accountability and resilience in the global carbon market.

As Cercarbono expands its footprint in sustainable finance, the collaboration with Howden underscores a shared commitment to advancing environmental stewardship through innovative insurance solutions. Together, they aim to set new benchmarks for reliability and risk management in the carbon credit

landscape, driving meaningful climate action worldwide.

About Howden

Howden is a leading global insurance intermediary group, specializing in innovative insurance solutions across diverse sectors worldwide. With a steadfast commitment to sustainability, Howden plays a pivotal role in the evolving carbon market by providing tailored insurance products that mitigate risks and enhance confidence in carbon-related investments. Leveraging deep industry expertise, Howden supports clients in navigating complex environmental challenges, including carbon credit transactions and sustainable finance initiatives. Through strategic partnerships and cutting-edge insurance solutions, Howden empowers businesses to achieve their environmental goals while ensuring robust risk management practices. Recognized for its proactive approach and client-centric ethos, Howden continues to drive forward-thinking solutions that promote resilience and sustainability in the global marketplace.

About Mere Plantations

Mere Plantations owns and manages over 4,000 hectares of previously degraded forestland within the Afram Headwaters Forest Reserve in Ghana that has been transformed into a flourishing plantation of Teak (Tectona grandis) interspersed with other species. The company, founded in 2007, delivers high quality teak hardwood products through a turnkey solution attractive for luxury industries including both to the luxury yachting industry and to more mass market high quality and durable timber provision. Mere’s business model brings significant benefits both to the UK and Ghanaian economies, the environment, and the rural community local to the plantation. From 2024 the company is releasing 32

million carbon credits to the voluntary carbon market over the life of the project based on carbon absorbed at the plantation, backed by a first-of-its-kind insurance policy.

About Cercarbono

Cercarbono is a leading carbon certification body renowned for its rigorous standards and commitment to transparency in the voluntary carbon market (VCM). Specializing in certifying projects that reduce greenhouse gas emissions and promote sustainable development, Cercarbono ensures that carbon credits meet the highest environmental, social, and financial integrity criteria. With a mission to accelerate global climate action, Cercarbono plays a pivotal role in verifying the authenticity and impact of carbon reduction initiatives worldwide. Through its meticulous certification process and dedication to excellence, Cercarbono empowers stakeholders to invest confidently in projects that contribute to a sustainable future.

About Climate Law

Climate Law Ltd is a boutique legal resource providing advice relating to the regulation of the carbon credit market with the intention of enabling private sector solutions for the growth and resilience of carbon offset offerings. Climate Law was pleased to be able to assist Mere, Cercarbono and Howden in reaching their ground breaking achievement in securing both the underlying policy and the Memorandum Of Understanding.

Full article on: Cercarbono, Climte Law Ltd. Howden Forge Alliance to Extend Carbon Credit Warranty Coverage – Cercarbono