Carbon removal registry Isometric has launched a carbon insurance framework co-developed with global insurance broker Marsh, enabling reforestation project developers to replace a portion of their buffer pool contributions with commercial insurance coverage.
Buffer pools function as self-insurance reserves of carbon removal certificates set aside by project developers to cover potential carbon reversals caused by natural hazards such as wildfires, extreme weather, or disease. By replacing part of these physical token reserves with financial insurance policies, developers can release higher proportions of carbon credits for sale in a project’s early operating years, improving cash flow without lowering reversal safeguards for buyers.
Five specialist insurers—Artio, CarbonPool, CFC, Kita, and Oka—have been approved under the framework to underwrite reversal risk for Isometric-certified reforestation projects, with additional underwriters expected to join following compliance reviews.
Key structural and strategic elements of the framework include:
- Revenue optimisation: Decreases mandatory upfront credit withholdings, increasing take-home revenue for project developers during initial capital-intensive phases.
- Risk mitigation: Maintains permanent carbon removal guarantees for buyers and investors by replacing physical buffer credits with third-party insurance payouts in the event of reversals.
- Market integration: Embeds institutional risk transfer solutions into standard voluntary carbon market infrastructure to enhance commercial bankability.
- Open standard access: Establishes a standardized application pathway for global insurance carriers to obtain approval and underwrite registered removal projects.
Bruno Figueiredo, Vice President of Finance at Brazilian reforestation developer Mombak, stated that integrating established risk-management mechanisms into the voluntary carbon market offers greater predictability for credit off-takers while improving capital efficiency for project developers.
Hema Mistry, Chief Executive Officer of FINPRO UK at Marsh Risk, added that embedding commercial insurance alongside traditional buffer mechanisms provides lenders, corporate buyers, and institutional investors with greater confidence to scale high-quality carbon removal projects globally.
