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Assisting Shanghai International Shipping Center in Green Transformation, China Taiping Insurance pioneered the "Shipping Decarbonization Insurance" nationwide


Recently, China Taiping Insurance Co., Ltd. pioneered the European Union Carbon Emission Cost Price Index Insurance for the shipping industry (hereinafter referred to as "Shipping Decarbonization Insurance"), which has landed its first nationwide order, supporting Shengrongze Shipping Co., Ltd. in responding to the risk of price fluctuations in the EU carbon market for ships involved in European navigation.
In recent years, international shipping emission reduction rules have become increasingly strict, and the International Maritime Organization, domestic and foreign economic entities have introduced multiple policy measures. The low-carbon management requirements of the international shipping industry have been continuously strengthened. The EU Emissions Trading System (EU-ETS) has been officially implemented for the shipping industry since January 2024.
The green transformation of the shipping industry also puts higher demands on the insurance industry. China Taiping Property and Casualty Insurance, a subsidiary of China Taiping Insurance, has taken practical actions to safeguard the green transformation and development of shipping. The "Shipping Decarbonization Insurance" launched this time is the first innovative financial product in China's financial industry to serve foreign trade and respond to the decarbonization risks of shipping under international climate change. In response to the key issue of the mismatch between current and future costs of carbon emissions from international shipping vessels, insurance is used to mitigate the operational uncertainty caused by cross period cost fluctuations, effectively alleviate the risks of China's shipping industry being included in the EU's carbon market management, provide strong support for enterprises affected by EU related policies, and further enhance the industry's ability to respond to international climate change risks.
The State Administration for Financial Supervision and Administration recently issued the "Guiding Opinions on Doing a Good Job in the Five Major Articles of Finance in the Banking and Insurance Industry", which requires focusing on the development of new quality productivity, effectively implementing and refining the "Five Major Articles", improving the quality and level of financial services for the real economy, and promoting the development of green insurance business in areas such as environmental protection and climate change.
Shipping and finance are highly integrated and mutually supportive. China Taiping Property and Casualty Insurance actively participates in the co construction of the shipping ecosystem, and is the earliest insurance institution in the industry to respond to the call for the construction of Shanghai International Financial Center and International Shipping Center, establishing the first shipping insurance business unit. For many years, shipping insurance has remained the second largest in the industry, and actively integrates into the international shipping insurance ecosystem, focusing on promoting the internationalization and integration of the shipping insurance industry.
It is reported that in addition to pioneering the "shipping decarbonization insurance", China Pacific Property and Casualty Insurance is currently actively building a shipping decarbonization risk reduction system, implementing the "five major articles" decision-making deployment. China Pacific will continue to fully leverage its professional advantages, practice responsibility, and devote itself to becoming a financial powerhouse, serving the construction of Shanghai International Financial Center and Shipping Center, and continuously supporting high-quality economic and social development.