AXA XL, a UK-based insurance and risk management company, launched an excess emissions insurance product for marine clients.
The product will help clients manage their environmental footprint to reinforce action on carbon emissions.
AXA XL’s in-house carbon team, in partnership with ClimateSeed, has designed the excess emissions insurance product.
ClimateSeed provides carbon removal and avoidance projects to its clients.
To review carbon products and services developed internally and through the London Market, AXA XL has added a carbon team.
The new offering is an extension of the company’s pre-existing marine hull product.
It compensates for a vessel’s carbon output in the event of an unforeseen extended journey, which results in more emissions.
The policy pays out with voluntary carbon credits equal to amount of excess emissions emitted, in such cases.
What AXA XL and parties involved say –
Sundeep Khera, Head of Marine, UK & Lloyd’s & Global Chief Underwriting Officer, Global Marine Hull, said:
“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. Our Excess Emissions Insurance aims to play an additional role in helping our marine clients to support global net zero ambitions.”
Sebastien Nunes, CEO, ClimateSeed, said:
“To support the Intergovernmental Panel Climate Change’s objective of global carbon neutrality, it is important for an organization to reduce its emissions in the value chain and contribute to projects that avoid or absorb emissions. We are happy to support AXA XL and its clients in contributing to premium projects that have positive environmental and social impacts”.
Source: https://axaxl.com/press-releases/axa-xl-launches-carbon-emissions-product-for-marine-clients
