Expanding sustainable horizons worldwide
Allianz Trade launched Specialty Credit Green2Green first in late 2020 and later in 2024, was certified under the Allianz Group’s Sustainable Solutions framework, streamlining assessment, validation and speed-to-market.
Specialty Credit Green2Green designed to address the lack of insurance solutions for projects that drive sustainability and the energy transition. This solution focuses on providing coverage for projects in low-carbon technologies across sectors, including energy, biofuel and transportation. As part of our commitment, we ensure that all premium paid during the life of a G2G policy is held in certified Green Bonds for the duration of the policy period.
With an initial focus on renewable energy projects, we’ve expanded the types of underlying sectors we cover through Green2Green, encompassing a broader range of low-carbon technologies, including biofuels and electric public transportation.
Our partnerships have also expanded beyond solely banks to include exporters and multilateral financial institutions.
Renewable energy across borders via wind and solar
In recent years, Specialty Credit Green2Green has supported projects in on/offshore wind and solar power in countries including Morocco, Poland, Japan, Chile and more. By creating renewable energy sources, these projects are helping countries diversify their energy mix and reduce dependence on fossil fuels.
In Poland, for example, Allianz Trade supported a major offshore wind project by partnering with European banks to insure a portion of the debt required for construction. The project benefits from Poland's location on the Baltic Sea, ideal conditions for wind power generation.
However, with its large scale and the involvement of multiple stakeholders, the project was not without its share of risks. Offshore wind turbines must be fixed into the seabed, where unpredictable ground conditions pose construction challenges. Additionally, once the turbines are installed, the energy grid must be adapted to absorb power from fluctuating sources such as wind – an issue conventional grids do not encounter. This aspect adds another layer of risk, especially given these projects are often built to function for upwards of 20 years.
Following a long due diligence process, we were able to bind the Green2Green policy, providing long-term coverage for this vital energy source.
Electrifying the future of public transport
A sector we are now growing our offering in is low-carbon transportation, helping build and update transport networks in various cities. Projects we’ve insured in this space include electric trams and buses, as well as metro systems in various regions such as the Baltics, North Africa and the Middle East. By helping contribute to sustainable city planning, these projects reduce cities’ reliance on fossil fuels and support efforts to improve air quality.
As part of our expansion, Allianz Trade also partnered with a multilateral development bank financing the transition to electric public transportation in a capital city in the Baltics. To this end, we insured a loan that enabled the city to replace aging trolleybuses with electric buses as the city’s primary mode of transport. Our long-tenor policy provides our insured financial certainty for this project, which is expected to significantly reduce carbon emissions and provide transportation for the next 15 years.
Our long-term commitment to a low-carbon future
As we look to the future, innovations like green hydrogen, electric vehicle batter plants and advanced transition electricity grids will play a pivotal role in the global energy landscape. Carbon capture and removal, a newer field Allianz Trade is investigating, is another technology gaining attention.
Specialty Credit Green2Green is singular in its long-term commitment to sustainable projects. While competition in financing renewable energy has intensified, Allianz Trade’s offering in this space is unique: rather than focus only on providing a one-off insurance policy, we are committing to reinvest over long tenors in the green economy.
