What:
AXA XL, in partnership with ClimateSeed, a company that provides premium carbon removal and avoidance projects, has launched an Excess Emissions Insurance product to help marine clients manage their environmental footprint and support actions on carbon emissions.
Why:
Shipping companies are working hard to reduce the carbon intensity of international shipping, and while carbon credits do not cancel out emissions, projects that generate voluntary carbon credits do contribute to the overall goal of global carbon neutrality. The Excess Emissions Insurance aims to play an additional role in helping marine clients to support global net zero ambitions.
How:
Excess Emissions Insurance indemnifies a vessel’s carbon output in the event of an unforeseen extended journey, caused by a covered risk, which results in additional emissions. Following such an event, the policy pays out with voluntary carbon credits equal to the amount of excess emissions emitted.