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Carbon Capture Payments

Giving clients the option to pay their service fees using voluntary carbon offset credits and renewable energy certificates (RECs).
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Paying Marsh fees with voluntary carbon offset credits and renewable energy certificates

To recognize clients that are pursuing and exceeding net zero carbon emission goals, Marsh is giving clients the option to pay their service fees using voluntary carbon offset credits and renewable energy certificates (RECs).

What are voluntary carbon offset credits and renewable energy certificates?

Carbon offset credits are records of investments made in environmental projects and infrastructure that either remove carbon dioxide or avoid the emission of Co2. Each offset represents the successful, verified removal or avoidance of one ton of Co2. Offsets are only generated once that removal or avoidance is complete, verified, and demonstrable. Each offset is serialized and trackable through a system known as a registry.

Renewable energy certificates (RECs) are records of renewable electricity generation and are issued to an organization's registry account when it generates one megawatt-hour (MWh) of electricity from a renewable energy resource and delivers it to the electricity grid. RECs are issued by registries within local power grids.

The Inflation Reduction Act encourages the development and use of renewable energy and greenhouse gas emissions reduction technology through permitting reform and tax incentives. The new legislation provides organizations with additional incentives to invest in solar, wind, and carbon capture technology, which should lead to the generation of more credits and offsets.

Marsh’s carbon credit payment offering

Marsh’s new payment program allows clients to transfer voluntary carbon offset credits and RECs to a key corporate banking partner via a registry account. The banking partner involved in Marsh’s program has stated it will only consider offsets and RECs that adhere to the highest standards and have rigorous oversight. The banking partner will review the carbon offset credits and RECs and decide whether to accept or decline them. After receiving credits and certificates, the bank then wires to Marsh funds equivalent to the proceeds of the transfer of the credit/certificate, which are then credited toward the client’s fee balance owing to Marsh. The service fees may relate to US insurance broking or risk advisory services.

Note that payments through carbon offset credits and RECs are restricted for service fees and cannot be used to pay insurer premiums. We are currently exploring expanding the program to include premium payments, which would require insurer participation.

The program is currently available to US-based clients, with the potential of expanding it globally.

 

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Paul Murray

Paul Murray

Senior Client Advisor, FINPRO