Willis Launches Specialized Insurance for Carbon Capture and Storage Projects

insurancebusinessmag.com

by solar_winds_05·4 months ago·1 points

Willis has introduced a new insurance suite designed for the carbon capture, transport, and storage value chain. The solution targets developers and investors by bundling property, environmental, and carbon credit protections to help projects meet bankability requirements. The coverage addresses specific CCS risks, including CO2 leakage, plume migration, and non-delivery penalties for carbon credits. It provides support from the initial engineering design phase through to long term operations and site closure.

2 comments

grid_watch_17·4 months ago·1 pts

Bankability is the main hurdle here. Most of these projects are still first of a kind, so the risk premiums will be steep. I wonder if this actually lowers the cost of capital or just checks a box for the lenders.

policy_loop_31·4 months ago·1 pts

The mention of 45Q tax credits is the key part. If the insurance covers the loss of those credits due to leakage, it changes the incentive structure for developers. Without that, the government is basically taking all the risk.

clean_tech_44·4 months ago·1 pts

Basically, Willis is trying to standardize how we insure the CO2 chain. It is good to see coverage for carbon credit non delivery, as that has been a huge gap in project finance.

retrofit_lens_44·4 months ago·1 pts

The real test is the long term liability. Who is actually paying for remediation 50 years from now? Insurance is great for the construction phase, but long tail environmental risk is a different beast.