AXA XL in the UK has launched a carbon emissions product designed to help marine clients manage their environmental footprint.
The Excess Emissions Insurance product was developed in collaboration with ClimateSeed, an impact company specialising in premium carbon removal and avoidance projects. It is the brainchild of AXA XL’s newly established carbon team, which is responsible for assessing and developing carbon-related products and services internally and within the London Market.
An extension to AXA XL’s existing marine hull product, the new offering provides coverage for a vessel’s carbon output in the event of an unforeseen extended journey caused by covered risks. After such an incident, the policy pays out voluntary carbon credits equal to the excess emissions emitted during a prolonged voyage.
Sundeep Khera, head of marine, UK & Lloyd’s, and global chief underwriting officer, global marine hull, highlighted the significance of AXA XL’s Excess Emissions product as shipping companies work hard to reduce the carbon intensity of international shipping.
“While carbon credits do not cancel out emissions, projects that generate voluntary carbon credits do contribute to the overall goal of global carbon neutrality,” said Khera. “Our Excess Emissions Insurance aims to play an additional role in helping our marine clients to support global net zero ambitions.”
Sean McGovern, CEO of UK & Lloyd’s, credited the expertise and dedication of the newly formed carbon team in enabling the creation of innovative solutions that enhance AXA XL’s ability to help clients meet their net zero goals.
“We will continue to look at alternative ways to partner with our clients to respond to their biggest challenges over the long term,” he added.
Climateseed CEO Sebastien Nunes also expressed his satisfaction in collaborating with AXA XL and its clients.
“To support the Intergovernmental Panel Climate Change’s objective of global carbon neutrality, it is important for an organisation to reduce its emissions in the value chain and contribute to projects that avoid or absorb emissions,” said Nunes. “We are happy to support AXA XL and its clients in contributing to premium projects that have positive environmental and social impacts.”
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