Counterparty Insurance
Tailored protection for early-stage risk
Counterparty Insurance is for completed carbon purchases or investments occurring at very early stage projects. The majority of our clients invest into pre-validation projects and we specialise in supporting clients in strong risk selection at this formative stage.
The insurance protects against project failure risk, such as the counterparty abandoning the project or becoming insolvent such that future credits cannot be delivered.
Why buy Counterparty Insurance?
Counterparty Insurance protects transactions at the pre-validation stage:
This insurance covers project failure-related 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, Counterparty Insurance has potential to convert to our Non-Delivery Insurance for full delivery risk protection.
How does Counterparty Insurance work?
We understand that counterparty risk is a deterrent to companies wanting to invest in pre-validation carbon credits.
Counterparty Insurance reduces key project failure-related counterparty risk, enabling companies to invest earlier in the carbon lifecycle, thereby securing their climate commitments.
The familiar framework of insurance is a risk mitigation mechanism provides confidence for in-house stakeholders to smooth the process of getting investments over the line.
Policy period up to five years.
