Isometric and Marsh Launch Carbon Removal Insurance to Reduce Reforestation Buffer Contributions

Carbon removal registry Isometric has launched an insurance framework that allows certified reforestation projects to use insurance to reduce their contributions to carbon credit buffer pools. Announced on 20 October 2026, the framework was developed with global insurance broker Marsh and is designed to help project developers manage the risk of carbon reversals while improving their financial returns. Five insurance providers, Artio, CarbonPool, CFC, Kita and Oka, have been approved to offer qualifying coverage.

Buffer pools are reserves of carbon removal certificates set aside to compensate for reversals, which occur when previously removed carbon is released back into the atmosphere through events such as wildfires, disease or forest degradation. Developers normally contribute a portion of their issued certificates to these reserves, reducing the volume available for sale. Under Isometric's new framework, qualifying insurance can replace part of that contribution, potentially increasing the number of certificates developers can sell during the early years of a project. Isometric says the arrangement is designed to maintain protections for buyers who retire carbon removal certificates.

 

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The framework introduces an alternative way to manage financial exposure to carbon reversals while retaining insurance and buffer mechanisms together. Hema Mistry, CEO of FINPRO UK at Marsh Risk, said the initiative "sets a clear pathway for using insurance alongside buffer mechanisms." She added that integrating insurance into carbon market infrastructure could provide greater confidence to developers, buyers, lenders and investors. The announcement does not specify insurance premiums, policy durations or how individual projects' buffer requirements will be recalculated.

Bruno Figueiredo, Vice President of Finance at Brazilian reforestation developer Mombak, welcomed the development as a step towards stronger risk management in voluntary carbon markets. "Insurance has the potential to provide buyers with greater certainty and predictability while enabling a more efficient approach to managing reversal risk," he said. For developers, reducing the number of certificates withheld in buffer pools could improve early-stage revenue and support project financing, although the net financial benefit will depend on insurance costs and coverage conditions.

Reforestation developers certified by Isometric can now approach approved insurers for coverage intended to meet the new framework's requirements. Other insurance providers may apply for approval, and Isometric is considering extending the approach to additional carbon removal pathways. The initiative could support wider adoption of insurance-backed carbon removal certificates, but its practical impact will depend on policy availability, claims performance and the ability to maintain effective protection against long-term carbon losses.

 

Source: Isometric