Insurance broker Marsh is launching an insurance solution specifically designed for the transportation and storage of carbon dioxide (CO2).

Available to projects globally, the solution should help address some critical insurance limitations that have previously hindered the rapid advancement of the carbon capture and storage (CCS) industry.

Underwritten by Canopius, the solution provides comprehensive coverage that enables operators to meet their financial security obligations when captured CO2 is being transported and injected into suitable geological structures. Marsh’s solution adds a new non-damage trigger for the geological leakage of CO2, providing an indemnification for the costs of corrective measures, as well as a trigger for the associated business interruption.

The solution also includes an indemnification for the costs incurred to acquire carbon credits for the mass of CO2 leaked, where applicable to the project's geography. This indemnification is available across the removal chain, whether the leak occurs from scheduled onshore facilities, the CO2 pipeline or ship, or from the storage complex itself.

Hannah Jennings, global carbon capture and storage initiative leader, Energy and Power, Marsh Specialty, said: "Carbon capture and storage has a fundamental role to play in reducing emissions globally and delivering the net-zero energy system. Marsh Specialty’s new solution not only represents a meaningful shift in the parameters of traditional energy insurance but also delivers greater certainty and confidence to investors, governments, and regulators.”

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