CCS insurance now available at Zurich

Enviromine

Publishing Date: 03 Mar 2009 5:42pm GMT
Author: Mining, People and the Environment

Zurich Financial Services has launched two new products for companies developing carbon capture and storage (CCS) facilities.

The two products (carbon capture and sequestration liability insurance and geological sequestration financial assurance) have been developed in collaboration with customers, academic experts and government officials, Zurich said. The CCS insurance is designed to cover liabilities during the operation of a power plant and attached storage facility, including pollution, business interruptions and geomechanical liability.

The second product, is targeted at closure and post-closure activities, and is designed to run for decades after closure. Coverage is not permanent, however, as it is envisaged that the stored carbon will eventually become the responsibility of host governments.

The new insurance products have been added to Zurich’s existing suite of climate-related products, which includes political-risk insurance, covering carbon credit projects and encouraging investors to get involved in environmentally sustainable projects, leading to reductions in greenhouse gas emissions. The coverage provides protection against the risk of circumstances in the host country preventing investors from receiving related benefits.