As Allianz Trade, the trade credit insurance arm of Allianz, introduces the new solution called Surety Green2Green, investments in low-carbon technologies and renewable energy projects can be facilitated. It will help businesses complete their contracts with partners and clients through surety bonds and guarantees for ensuring project completion.
Surety bonds come in handy to provide any kind of financial security that is needed behind contractual commitments in order to safeguard the stakeholders against potential losses triggered by delays or incomplete execution. By Surety Green2Green, Allianz Trade seeks to bolster companies within the clean energy and sustainable infrastructure sectors through monetary guarantees that instill and boost confidence and reliability. The process here is a rigid assessment of projects for suitability with the rigid low-carbon technology standards set up by Allianz Trade. This assessment is led by a team of sustainability experts to ensure only projects that commit to meaningful environmental contributions are supported.
The initiative has seen significant impacts, according to Soenke Schottmayer, Head of Commercial – Global Surety at Allianz Trade. This is because premiums earned from such transactions are invested in certified green bonds. It’s a full-circle benefit, Schottmayer said, explaining how the model not only ensures completion of sustainable projects but directly invests in green finance, making this investment have an amplifying impact on the economic transition towards sustainability. The new solution, he added, can drive adoption and success in crucial low-carbon projects as it simultaneously advances the ecosystem of green finance.
Programs like Surety Green2Green are quite comprehensive in involving significant renewable power and heat-generating operations, carbon removal schemes, and environmental friendly building initiatives. The solutions here in the new programs are great facilitators for all the necessary technologies and infrastructure that would support the idea of a sustainable future. Indeed, taking to this kind of operation- helping to ensure that every single one of Allianz’ solutions plays its role as best possible in attaining these far-reaching goals at a worldwide level in efforts toward de-carbonizing.
What we do in this matter, as an insurer, is crucial: by providing insurance and bonds for technologies which are critical for the transition and decarbonization of our economy, we offer the confidence and support necessary for these initiatives to succeed,” Aylin Somersan Coqui, CEO of Allianz Trade said. The Allianz approach is therefore designed to provide assurance to developers and stakeholders as the way for increased investments and successful project outcomes in the renewable and low-carbon sectors.