Munich Re kicks off Costa Rica carbon removal project

Munich Re’s TreeTrust has kicked off its initial carbon removal project with the planting of trees across more than ten million square metres of former grassland in northern Costa Rica. TreeTrust’s first two clients, the Vaillant Group and Munich Re, will invest in company forests.

As the forests grow over the next 40 years, they will capture more than 600,000 metric tons of CO2. TreeTrust’s partner and project developer, BaumInvest, will oversee the afforestation on site and issue CO2 certificates.

Munich Re board member Torsten Jeworrek, said: ”A lot of companies set ambitious climate protection targets. They want to offset inevitable carbon dioxide emissions by capturing the same amount from the atmosphere. In a carbon offset market where supply is scarce, TreeTrust organises suitable afforestation projects for discerning companies.

”Munich Re has been researching the risks of climate change for over four decades. Our innovative approaches here emphasise prevention, risk transfer and resilience. TreeTrust is now leveraging our expertise in the carbon offset market, in turn aiding the transformation towards a climate-neutral economy.”

The project in Costa Rica will help re-establish a rainforest that benefits from high levels of biodiversity and water. It is hoped the project will also create new jobs for local communities.

Michael Menhart, in charge of sustainability at Munich Re, said: “Our project with TreeTrust is an innovative, high-quality solution that will help us achieve our net-zero targets between now and 2030, but also thereafter.

“As one of our long-term solutions, the new afforestation project enables us to offset our unavoidable operational emissions by means of the new forest that will soon start growing in Costa Rica. What’s more, this forest project will hedge against rising prices for voluntary carbon credits.”  

Jens Wichtermann, director of Sustainability Management at the Vaillant Group, added: “By 2030, the Vaillant Group will reduce the carbon emissions from its manufacturing and business operations by 50%. We will offset the remaining emissions through afforestation projects.”