Specialty insurer DUAL has launched a new insurance product designed to support biodiversity uplift at the Highlands Rewilding Bunloit project in Scotland.
“Unlike products focused on carbon credit capture, this product is the first of its kind designed around natural capital, and offers landowners assurance that their land will retain its economic value, irrespective of its biodiversity progress,” DUAL explained.
Crucially, this mechanism provides landowners with access to investor capital that might otherwise be financially inaccessible, thereby enabling the development of natural capital initiatives.
Furthermore, it provides confidence to purchasers of carbon and biodiversity units, assuring them that their units are protected by a comprehensive insurance programme.
DUAL’s insurance policy offers coverage to the Highlands Rewilding Bunloit project to protect and restore its habitats.
Additionally, Highlands Rewilding will sell biodiversity and carbon units during this period. DUAL’s insurance then backs those units by covering the cost of acquiring substitute units to meet the insured’s contractual obligations should it be necessary.
Simon White, Underwriting Director & Lead Underwriter, Environment Climate and Innovation, DUAL UK, said: “This project highlights the growing demand from developers for insurance solutions that address their biodiversity and carbon obligations and liabilities. We are speaking to a number of corporate stakeholders who are increasingly engaging with nature markets, recognising both their urgency and potential.
“There’s a growing awareness that for sustainable development to progress, the biodiversity market must scale, and insurance has a key role to play in unlocking that growth. This project marks a significant step forward in enabling nature-positive development and investment.”
This solution is the first comprehensive insurance product brought to market since the 2021 Environment Act made it mandatory for all new developments in England to achieve a minimum of 10% biodiversity net gain (BNG) compared to pre-development levels.
Simon McGinn, CEO, DUAL UK, commented: “MGAs bring the deep expertise and innovation needed to support businesses facing complex or emerging risks, such as those involved in pioneering biodiversity and rewilding initiatives.
“At DUAL, our entrepreneurial approach allows us to create bespoke insurance solutions that not only unlock investment but also enable nature-positive development. This innovative product reflects our commitment to driving the growth of the UK’s nature markets and supporting sustainable progress through tailored risk management.”
England’s BNG market is projected to reach nearly £3 billion by 2035. Since BNG regulations began, an estimated 7,500 planning applications have included BNG requirements, with about 2,000 new ones submitted monthly.
Scotland is finalising its nature recovery market framework, which is expected to require landowners with over 1,000 hectares to demonstrate biodiversity enhancement.
Highlands Rewilding aids landowners in developing nature-positive, profitable land use strategies, allowing them to monetise natural assets by selling carbon and biodiversity credits to developers.
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