New York | August 6, 2025
Marsh, the world’s leading insurance broker and risk advisor and a business of Marsh McLennan (NYSE:MMC), today announced the placement of a carbon credit insurance policy for Chestnut Carbon, a New York-based nature-based carbon removal developer. Underwritten by London market insurer CFC, the policy helps protect Chestnut from the risk of non-delivery of high-quality carbon removal credits as part of a long-term agreement with Microsoft Corporation, which earlier this year committed to purchasing seven million tons of credits to help achieve its goal of becoming carbon negative by 2030.
The policy supports Chestnut’s successful closing of a landmark non-recourse project finance credit facility of up to $210 million led by J.P. Morgan and a syndicate of leading lenders. Chestnut will use the financing to acquire and restore roughly 60,000 acres of land in the Southern US and plant over 35 million native, biodiverse hardwood and softwood trees. The facility, which is backed by the afforestation project, is the first such project financing in the voluntary carbon market.
Commenting on the insurance placement, Amy Barnes, Head of Climate & Sustainability Strategy, Marsh, said: “Carbon removal credits have become increasingly important for organizations seeking to offset their emissions through tech or nature-based solutions. Working with CFC, we have been able to create an insurance solution that has not only facilitated Chestnut’s innovative financing but also underscores the critical role that insurance plays in building confidence in the voluntary carbon credit market, enabling the broader energy transition.”
Greg Adams, Chief Financial Officer, Chestnut Carbon, added: “The availability of suitable carbon credit insurance is essential in supporting our non-recourse project financing. Akin to more traditional asset classes, a robust insurance package reinforces the bankability of our project and is catalytic for the maturation of the carbon market space more broadly. We are instilling further confidence in the future of the carbon removal credit market by building a sustainable financing model, of which insurance plays a key part, to help organizations like Microsoft meet their carbon negative goals.”
George Beattie, Head of Innovation at CFC, commented: “In a short timeframe, CFC has built a reputation for innovation in the context of carbon markets and associated risks. We exist to make deals happen and are excited about a future where blended finance, including insurance, facilitates an economic model for fighting the climate crisis that works for everyone.”
