Ping An Property & Casualty Insurance (Ping An P&C) has developed its first ocean carbon sink index insurance in Dalian City, located in the southernmost part of Liaoning Province in northeast China.
It provides coverage against specific climate changes [4] in the marine environment that may harm local species and weaken carbon sinks. The solution offers a 400 000 CNY (58 600 USD) compensation for 8 866 square meters of kelp, shellfish and seaweed.
According to the Chinese insurer, marine catastrophes such as typhoons, abnormal sea temperatures and red tides (algae blooms) could compromise the ocean's carbon sequestration, releasing CO2 back into the air and thus slowing down the progress of the transition to carbon neutrality.
The new solution follows Ping An's pilot project for the forest carbon sink remote sensing index insurance.
This initiative confirms Ping An's commitment to the environment.