Abandonment and Insolvency Cover
Specific counterparty protection for early-stage risk
Protects against the risk of a counterparty abandoning the project or becoming insolvent such that the credits cannot be delivered.
Abandonment and Insolvency Cover is for completed carbon purchases or investments occurring at the Design & Implementation stage.
Why buy Abandonment and Insolvency Cover?
Abandonment and Insolvency Cover protects transactions at the pre-validation stage:
This cover relates to an element of delivery risk – forward-purchased carbon credits might not result in verified delivered credits, on account of counterparty issues.
Protects the insured against the risk the counterparty abandons the project, or becomes insolvent, leading to a failure to deliver credits.
Is applicable to all types of carbon projects.
At the point of validation, Abandonment and Insolvency has potential to convert to our Carbon Purchase Protection Cover for full delivery risk protection.
How does Abandonment and Insolvency cover work?
We understand that counterparty risk is a deterrent to companies wanting to buy pre-validation carbon credits as part of a high-integrity climate strategy.
Abandonment and Insolvency reduces counterparty risk, enabling companies to invest earlier in the carbon lifecycle, thereby securing their climate commitments.
Policy period up to five years.
