Groupama supports low-carbon development by creating a general insurance policy distributed by Stock CO2

This insurance is distributed by Stock CO2. This operator acts as a link between companies that want to offset their environmental footprint and foresters or farmers seeking financing for their low-carbon projects. By investing in these projects, the companies receive carbon credits. Groupama Forêts Assurances is partnering with Stock CO2 and securing this process by creating insurance for all its afforestation or reforestation projects. Young plantations are covered against several hazards, including dryness and frost.

The Low Carbon Label, created in 2019, provides a certifying framework for carbon reduction or sequestration projects. It should help France achieve its climate objectives: carbon neutrality by 2050 and a reduction in the carbon footprint of French consumption.

The agricultural and forestry sectors have a role to play in this approach, for example by developing projects to plant hedges, afforest neglected land, reforest damaged forests, etc.

Companies that wish to voluntarily offset their incompressible greenhouse gas emissions can do so by financing this type of labelled project. In return, they obtain carbon credits.

Assuring project leaders, reassuring investors

To ensure that this “compensation” mechanism is carried out under the right conditions, Stock CO2 acts as an interface between the “financing” companies and the local project owners. In particular, it takes care of all the procedures related to certification (the project must be validated by the Ministry of Ecological Transition) and the sale of carbon credits.

To help secure this operation and to address the issues raised by afforestation or reforestation, Groupama Forêts Assurances has created a damage insurance policy distributed exclusively by Stock CO2. This offer, called (Re)afforestation, is innovative in that it insures young plantations against frost and dryness, in addition to storms, hail and snow.

Until now, hazards could compromise projects and therefore discourage investors: the granting of carbon credits is in fact subject to the success of the plantations after 5 years (duration of a low-carbon project).