Carbon removal registry Isometric has launched an insurance framework designed to help reforestation developers improve project finances by reducing the number of carbon removal certificates they must reserve against potential losses.

Developed with global insurance broker Marsh, the framework allows eligible projects to use approved insurance policies instead of part of their contributions to a buffer pool. These pools hold certificates as protection against reversals, when stored carbon returns to the atmosphere because of events such as wildfires or disease.

Under the new arrangement, developers could retain a greater share of their certificates for sale, increasing revenue, particularly during the early years of a project. Isometric said the approach is intended to provide greater financial flexibility without weakening the safeguards underpinning certificates purchased by buyers.

Artio, CarbonPool, CFC, Kita and Oka have been approved to provide insurance to reforestation projects certified by Isometric. Other insurance providers can apply to join the framework in the future.

The registry said its requirements establish a route for integrating insurance with existing buffer mechanisms. The aim is to manage reversal risk while ensuring that each certificate retired by a buyer continues to represent a tonne of carbon dioxide (CO2) removed from the atmosphere.

Bruno Figueiredo, vice president of finance at reforestation developer Mombak, described the initiative as “an important step toward a more mature carbon market.” He said insurance could offer buyers greater certainty while improving how reversal risks are managed.

Hema Mistry, chief executive of FINPRO UK at Marsh Risk, said the framework supports the integration of carbon insurance into market infrastructure, potentially helping developers expand projects while giving buyers, lenders and investors more confidence.

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