UK-based broker Howden has launched an insurance facility specifically designed to cover CO2 leakage from large-scale carbon capture and storage (CCS) facilities. Howden said that the aim was to stimulate the crucial investments necessary for achieving global net-zero targets.
Developed by Howden and spearheaded by SCOR’s syndicate at Lloyd’s, the facility offers protection against environmental damage and revenue loss resulting from CO2 leakages in CCS projects, whether these occur suddenly or gradually.
Hoden said that the solution addressed a major risk inherent in CCS technology. The UK Government Department for Energy Security & Net Zero emphasized the importance of this coverage in its Business Model for Carbon Capture, Usage, and Storage.
Led by Glenn O’Halloran, executive director at Howden Climate Risk & Resilience, this initiative has seen various other markets within Lloyd’s pledge their support for this facility. Additional capacity was expected to meet growing global commercial demand, the company stated.