Counterparty Insurance
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.
Counterparty Insurance is for completed carbon purchases or investments occurring at the Design & Implementation stage.
Why buy Counterparty Insurance?
Counterparty Insurance 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, 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 buy pre-validation carbon credits as part of a high-integrity climate strategy.
Counterparty Insurance reduces counterparty risk, enabling companies to invest earlier in the carbon lifecycle, thereby securing their climate commitments.
Policy period up to five years.
