ESG & Investing
Insurers Are Working to Shore Up the $2 Billion Carbon Offset Market
The global voluntary carbon offset market has seen an erosion of trust. Now, insurers are aiming to help fix some of the issues.
Some projects, particularly forest projects, have been shown to benefit the climate much less than promised.
Photographer: Max Whittaker/BloombergThis article is for subscribers only.
Data fraud, questionable accounting practices and intensified catastrophes are just some of the issues that have battered the voluntary carbon market.
Those misfortunes have helped spur a new line of business: Insurance policies designed to de-risk credits that polluters buy to neutralize their climate impact. Whether insurance can help stabilize an industry under heavy scrutiny remains to be seen, though.