Carbon Credit Warranties Introduced to the Warranty Industry

Howden has launched the first Carbon Credits Warranty and Indemnity insurance policy in the warranty industry, covering the sale of carbon credits for a reforestation project in Ghana by Mere Plantations. This policy enhances trust in carbon credits, addressing concerns around their quality and governance, and encourages more investments in the carbon market. By ensuring the integrity of these credits, the policy allows Mere Plantations to sell them at a premium, setting a new benchmark for the voluntary carbon market. Howden has already marked their first sale of a policy, that being to Uniserve. 

With governments increasing legislation around carbon emissions, per the US Office of Sustainability, more companies will be looking to purchase carbon credits to offset their emissions in order to maintain compliance. These factors could create a brand new market in the extended warranty market, as no other such warranty or insurance policies currently exist.