Zurich Creates Policies for Carbon Capture and Sequestration Needs

Zurich now offers specialized products designed to meet the unique insurance needs of Carbon Capture and Sequestration (CCS) projects from design over operational phases through to closure and post closure events at the geologic storage sites.

Considering the perceived challenges facing continued fossil fuel use and sustainable climate protection, it is anticipated that effective deployment of CCS systems will be a critical element of meeting long-term global carbon emission reduction, the insurer said. As such, Zurich – in conjunction with customers, academic experts and government officials – has developed a deep expertise in the risk issues associated with these technologies, and now has identified a role the insurance mechanism can play in facilitating future CCS usage.

“We are proud to add these new products to enable the use of this new climate risk mitigation technology,” said Lindene Patton, climate product officer for Zurich. “Such a comprehensive approach is only possible through deep collaboration – connecting our internal expertise with public policy, industry and academic experts to create a sum which is bigger than the parts.”

Patton added that “with the offering of these products, we have eliminated a significant barrier to widespread deployment of this critical technology in the long-term mitigation of carbon emissions.”

With the addition of these two new coverages — Carbon Capture and Sequestration (CCS) Liability Insurance and Geologic Sequestration Financial Assurance (GSFA) — to the existing portfolio of climate-related insurance products, Zurich can now facilitate the deployment of and insurance of an innovative cleaner coal solution from design to closure through the following coverages:

CCS Liability Insurance Policy
• pollution event liability,
• business interruption,
• control of well,
• transmission liability, and
• geomechanical liability.

GSFA Policy
• specified closure and post closure activities.

These products can be applied not only to cleaner coal operations, but also to a wide variety of industrial processes, on shore and offshore. Not all coverages are available in all jurisdictions.

Source: Zurich