Zurich zooms in on carbon credit market
Zurich Financial Services Australia is set to provide political risk insurance (PRI) for carbon credit projects in emerging markets — part of a wider initiative to help combat climate change.
The policy will help protect investors in carbon credit projects against the risk of host governments attempting to deny benefits they are entitled too under the Kyoto Protocol — the international treaty created to help reduce greenhouse gas emissions associated with global warming.
Zurich Financial Services Group president of surety, credit and political risk Daniel Riordan said PRI should make carbon credit projects more attractive to investors concerned about political risk and market volatility.
Zurich Australia head of emerging markets David Anderson said he expects the carbon credit market, worth an estimated US$60 billion, to continue to boom.
“As financial incentives for carbon products become more common in the advent of emissions trading, we anticipate seeing more investments in emerging markets,” he said.
Zurich’s global group already offers PRI for carbon credit projects in other regions.
Recommended for you
While M&A has ramped up nationwide, three advice heads have explored Western Australia’s emergence as a region of interest among medium-sized firms vying for growth opportunities in an increasingly competitive market.
The Australian Financial Complaints Authority has reported an 18 per cent increase in investment and advice complaints received in the financial year 2025, rebounding from the previous year’s 26 per cent dip.
EY has broken down which uses of artificial intelligence are presenting the most benefits for wealth managers as well as whether it will impact employee headcounts.
Advice licensee Sequoia Financial Group has promoted Sophie Chen as an executive director, following her work on the firm’s Asia Pacific strategy.
