Uniserve, the UK’s largest logistics & global trade management provider, is delighted to be leading the way with its investment in Mere Plantations Carbon Credits Warranty and Indemnity (W&I) insurance policy.

On 21 June 2024, Mere Plantations LTD (“Mere”) announced the placement of the world’s first Carbon Credits (W&I) insurance policy. Brokered by Howden, the global insurance intermediary group, and by Climate Law Limited, acting on Mere’s behalf, the novel insurance product is well-positioned to disrupt the carbon credit market.

Mere Plantations owns and manages over 4,000 hectares of previously degraded forestland within the Afram Headwaters Forest Reserve in Ghana that has been transformed into a flourishing plantation of more than three million Teak (Tectona grandis) interspersed with other species.

The demand for high-quality carbon credits is strong, and by using insurance as a governance mechanism, the W&I policy significantly increases the integrity and value of the carbon credits. Mere can demonstrate to buyers that their credits have met the highest levels of environmental, social and financial diligence, and that all claims made regarding the project’s provenance and impact are financially insured.

This insurance policy allows project developers to access the underwriting expertise of the M&A insurance market, providing assurance in the methodology and implementation of their carbon credit projects. The process of due diligence by the insurers has been made possible by the project’s quality and thorough certification process of the Cercarbono Certified Carbon Standard, under which Mere will certify over 32 million carbon credits over the life of the project. This will make the project the biggest lifetime carbon credit project in Ghana by a significant magnitude.

Current insurance for carbon credits is often limited to a specific aspect of the certification or sale process, such as the buffer pool integrity or as insurance against fraudulent claims. This policy differs by uniquely insuring the specific warranties, both at the point of sale and throughout the carbon certification process. This product can catalyse explosive growth within the carbon market and provide comfort to buyers concerned by the recent integrity challenges to the voluntary carbon market.

Recognising the value of this protection, and the high quality of the credits, buyers are purchasing the credits at a premium compared to other reafforestation projects currently offered in the market. Uniserve, a UK-based logistics company, is the first company to buy W&I insured credits.

Mark Hogg, Chief Executive Officer of Mere Plantations, said: “Our ultimate goal has been to demonstrate how re-establishing degraded forest land can be a viable, standalone commercial enterprise without any need for aid or government intervention. Working with Howden and Climate Law to launch this first-of-its kind insurance offer, we are now poised to unlock the potential of the carbon market and achieve that mission. We are proud to offer our customers access to our high-quality offsets with full confidence that the carbon credits they purchase from us are legitimate, verified, and will deliver on their promised emissions reductions. I am particularly excited to witness the positive impact this product will have and its role in reinstating confidence and integrity in the voluntary carbon market.”

Gary Cobbing, Uniserve’s Group Chief Commercial and Operating Officer, said: “Mere Plantations shares Uniserve’s commitment to sustainability and integrity, making them an ideal source for our investment in carbon credits as part of our ongoing carbon reduction plan. The transparency and assurance afforded by the additional insurance policy further boosts our confidence in this partnership and we look forward to witnessing the impact this development has on the carbon market. Beyond environmental benefits, this collaboration also delivers true social value by supporting local communities in Ghana and brings positive impacts to many lives, something we are truly proud to be part of.”

For more information on how your business can invest in Mere Plantations W&I backed carbon credits scheme, email carboncredits@ugroup.co.uk to discuss.