- New Oversight Role: Howden will independently assess insurance policies to support the eligibility of carbon credits under CORSIA, enhancing credibility and compliance.
- Market Expansion: The initiative opens access to a broader range of insurance products, reducing political risk and unlocking institutional capital in carbon markets.
- Aviation Decarbonization: Supports CORSIA’s legally binding emission offset scheme for international airlines, promoting the issuance of high-integrity carbon credits.
Howden, the global insurance intermediary, has been appointed by Gold Standard to independently assess insurance policies linked to the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). The move aims to de-risk investment in carbon offset projects by identifying insurance products that meet Gold Standard’s stringent eligibility criteria.
The new process supports the first phase of CORSIA (2024–2026) and enables carbon credit developers to access approved insurance options to mitigate political risks, a common barrier to scale in climate finance.
Charlie Pool, Head of Carbon Markets, Climate Risk and Resilience at Howden, said:
“This collaboration marks an important step for carbon markets. By broadening access to insurance products and reducing risks, the partnership will provide additional security, through independent verification, helping buyers purchase with confidence and in compliance with internationally recognised standards.”
CORSIA, developed by the International Civil Aviation Organization (ICAO), mandates that international carriers offset any growth in emissions above baseline levels. All participating airlines are legally required to use either eligible carbon credits or sustainable aviation fuel (SAF) to meet offset obligations.
The insurance assessment mechanism also helps avoid double counting between international and national carbon targets. Several carbon standards, including Gold Standard, now recognise the role of insurance in mitigating such risks.
Pool added:
“This is a perfect example of how embedded insurance enhances carbon market integrity, in this case supporting the aviation energy transition by allowing the issuance of credible carbon credits and facilitating compliance with CORSIA. The new insurance process will also allow more institutional capital, which was previously held back, to flow into the market, setting an exciting precedent that can be replicated elsewhere to unlock the full potential of carbon markets.”
Margaret Kim, CEO of Gold Standard, emphasized the role of insurance in expanding project eligibility under CORSIA:
“To enable climate action for people and nature, we need to broaden access to new and growing markets, including CORSIA. By recognising insurance policies through a rigorous assessment process and allowing their use to address political risk, we can enable more projects to supply credits for CORSIA’s first phase, in a way that is credible, reliable and based on solid foundations.”
The partnership between Howden and Gold Standard marks a critical step toward establishing scalable, high-integrity carbon markets tailored to the aviation sector’s climate obligations.
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