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Tokio Marine HCC is proud to be the lead capacity provider for Artio which will give businesses in the carbon markets the critical support the need to bring projects to fruition.
While the carbon markets have faced challenges in recent years, the breakthrough in the Article 6 carbon markets mechanism at COP29 is a key change of pace. We now have the much-needed clarity and recognition of the role the carbon markets will play in achieving net zero.
The transition to a decarbonised society is critical to our global future, and the carbon markets are set to play a key role in this transition. Insurance must be in place to support it.
Insurance can be both a great enabler and unfortunate blocker. With insurance, carbon projects can secure investment and a bright future. Without, progress stalls significantly.
At Tokio Marine HCC, we wanted to be an enabler of the transition. We want to help facilitate progress and support the businesses that will be key lynchpins for transitioning businesses, like Artio.
This isn’t about greenwashing the insurance sector. We aren’t committed to the transition just so we can talk about it. We’re committed to the green transition as it is the world’s next industrial revolution.
Any insurer, or other business for that matter, that does not fully grasp the magnitude of this change and the vast opportunities on offer will simply be left in the dust.
McKinsey have estimated that the green transition will spark the greatest capital reallocation in a century, requiring $9.2 trillion in annual spending on physical assets. Carbon markets will be an instrumental part of this, alongside wider businesses that are facilitating or transitioning themselves.
Tokio Marine HCC intends to support these businesses and grasp the green opportunity.
This year, the renewable energy share of global power generation is forecast to expand from 30% in 2023 to 46%, and it is predicted that renewables will produce more electricity than coal.
We’ve already got an immense presence in this sector. GCube, part of TMHCC, has been a renewable energy project underwriting since the 1990s and currently has eight of the world’s 10 leading renewable energy operators as its customers.
We support more than 2,000 projects in 38 countries, giving us a presence like few other insurers. This gives us the perfect platform to do a lot more.
We intend to be an insurer who realised and capitalised on the incredible opportunity that has been laid out before us. Our capabilities and scale mean we are well placed to rapidly establish a significant market presence in the green transition and become to go-to insurance partner for green technologies and projects.
It’s not just the energy sector that will be focused on the transition. Whether it’s a corporate business operating from an office in canary wharf, to a local chain of retain stores, every single business will be impacted by the transition. We intend to support them.
As insurers and risk advisors, we operate at a critical juncture of the transition process.
We must encourage those who have not yet seen the risk, and support those who are already on the move. We are proud to support businesses like Artio to get them off the ground, and cannot wait to continue announcing new ways in which we’re supporting businesses in the transition.
The transition presents an opportunity like no other. Everyone will be impacted. There is both a moral and commercial imperative to act now – and we intend to do so.
