Insurance and investment group Allianz’s trade credit insurance unit Allianz Trade announced the launch of Surety Green2Green, a new solution aimed at enabling clients to engage in low-carbon technologies and renewables projects through issuance of surety bonds and guarantees securing project completion.

Surety bonds support companies’ contractual obligations with customers and suppliers, protecting business partners against loss arising from late or incomplete performance of obligations.

According to Soenke Schottmayer, Head of Commercial – Global Surety at Allianz Trade, the process followed by the new solution includes the identification of a project as aligned with Allianz Trade’s low-carbon technology standards, followed by performance of a rigorous assessment led by the firm’s sustainability experts.

If the criteria are met, the premiums earned by Allianz from the transaction are held in certified green bonds, Schottmayer added, creating “a full-circle benefit: we issue bonds that ensure low-carbon project’s success, and we fuel the sustainable transition of the overall economy.”

Projects covered by Surety Green2Green can range from renewable energy power and heat generation to carbon removal and green buildings, Allianz Trade said, with the new solution designed to “support and secure the technologies and infrastructures necessary for a sustainable future while contributing to the green finance ecosystem. “

Aylin Somersan Coqui, CEO of Allianz Trade, said:

“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.”