Willis Launches Integrated CCS Insurance to Unlock Project Financing

Global risk and insurance company Willis has introduced a dedicated insurance solution for carbon capture and storage (CCS) infrastructure, aiming to improve access to financing for projects across Europe and Southeast Asia. While CCS is recognized as a key tool for reducing greenhouse gas emissions, long-term risks—such as storage leaks, uncertainty over carbon credit revenues, and the complexity of involving multiple project partners—have hindered financing and market scaling. According to Marie Reiter, head of global broking strategy at Willis, the core issue is that carbon credit revenue is difficult to insure, limiting financial viability. Currently, only 77 CCS projects are operational worldwide, with 610 in development and 47 under construction, and most sanctioned projects (e.g., Norway's Northern Lights, UK's Northern Endurance Partnership) rely heavily on government backing.

Addressing the Interconnectivity Problem

Reiter's team spent a year collaborating across energy, marine, and construction divisions to understand how insurance could make commercial lenders comfortable with CCS projects. The primary challenge is the "interconnectivity problem" of CCS's disintegrated value chain, where interdependencies—especially around carbon credits—create unique risks. Willis's integrated solution, launched on Wednesday, adapts existing upstream energy, marine, liability, and environmental protections to cover the entire CCS value chain (capture, transportation, and storage). This addresses specific risks, including technology uncertainties, liability transfer between onshore capture and offshore storage, CO2 behavior in geological stores, and potential plume migration.

Market Development and Regional Opportunities

Willis expects increased CCS insurance activity as more projects enter construction and operational phases in Europe and Southeast Asia. The company is already in "meaningful conversations" with project companies to secure its first CCS cover. Reiter notes that the insurance market deliberately waited for clarity on contentious issues, as underwriters assessed what risks they could manage, with government support regimes varying significantly by country. Northern Europe is identified as "the obvious leader" for developing a market beyond government-backed projects, due to the North Sea's reservoir potential. Additionally, a hub may emerge in Southeast Asia, driven by Japan's net-zero commitment and its support for off-shored CCS projects in Indonesia and Malaysia.

Impact on Project Finance and Development Pace

The Global CCS Institute's 2025 report highlights a pipeline of 734 projects, noting that barriers to commercial deployment are being removed as investors gain certainty. Reiter emphasizes that unlocking project finance for CCS will be a "game changer" for development pace, as developers of capture infrastructure require insurance to secure lending. Solving the insurance problem will accelerate final investment decisions, enabling faster project progression.