Credit insurance company Euler Hermes announced today the launch of Green2Green Single Risk, a credit insurance solution providing credit insurance solutions targeted at the green finance sector.
According to Euler Hermes, the company is unveiling the new solution as demand for sustainable finance solutions is growing rapidly, driven by the trillions in new investments needed each year to meet the Paris Climate Agreement goals.
The new solution will provide insurance to green transactions, with eligibility determined by a bespoke environmental evaluation. Initially, Euler Hermes will target sectors including renewable energy, energy efficiency, recycling, water treatment, and mass public transportation with the new solution. Green2Green Single Risk solution is available to all Euler Hermes Transactional Cover Unit (TCU) clients.
Isabelle Girardet, Global Head of Transactional Cover & Investment Solutions, said:
“The opportunity to play a role in reaching our global climate objectives is an achievement for us and for our first two participating partners, Natixis and La Banque Postale. The reinvestment of premiums into green bonds provides our clients with recognition for contributing to the green economy, as well as tangible results for each party involved. We look forward to welcoming more bank partners and TCU clients on board.”
Euler Hermes stated that its new solution creates a virtuous “green cycle” with 100% of the generated investable premium invested back into the green economy, in the form of certified green bonds, supporting new green projects and completing a green economic cycle.
Florence Lecoutre, Member of the Board Management, in charge of Digital Transformation, Human Resources & ESG, said:
“Most national governments have made strong commitments to transition to low carbon economies, and companies have a key role to play if we wish to meet the Paris agreements goals. Euler Hermes leads the way with a new pioneering approach thanks to the Green2Green Single Risk solution that establishes a virtuous green cycle. We believe that enabling a green value chain is a particularly effective way of supporting the green economy and accelerating the energy transition.”