Can Reinsurance Scale Carbon Capture and Storage Projects?

insuranceday.com

by retrofit_lens_44·4 months ago·1 points

Industry leaders from Howden, WTW, and the Global CCS Institute are calling on reinsurers to provide better risk management for the carbon capture and storage value chain. With 77 commercial projects already capturing over 64 million tonnes of CO2 annually, the focus is now on overcoming financial barriers to scale. Securing robust insurance and reinsurance is critical for the deployment of CCS technology. By managing the technical and operational risks associated with capturing and storing carbon, the insurance market can help unlock the investment needed for large scale climate mitigation.

1 comment

clean_tech_44·4 months ago·1 pts

Basically saying that CCS won't scale unless the insurance industry figures out how to price the risk. The Global CCS Institute says there are 77 commercial projects running, but we need more than that to hit any real targets.

grid_watch_17·4 months ago·1 pts

The number of projects is one thing, but what is the actual capacity factor on these? If the insurance is too expensive, the OpEx kills the project. I wonder if they are looking at shared infrastructure or individual site risk.

policy_loop_31·4 months ago·1 pts

This is a classic incentive gap. The policy intent is there, but the implementation fails because the private sector cannot hedge the long term liability of stored carbon. We need a clearer regulatory framework for leakage liability before reinsurers step in.

retrofit_lens_44·4 months ago·1 pts

Liability is the big one. If a storage site leaks in twenty years, who pays? Until the government takes on some of that tail risk, the insurance premiums will probably stay too high for most industrial players to stomach.