Non-Permanence Risk Insurance
Protection against the risk of carbon reversal at the project level
Non-Permanence Risk Insurance protects project developers against carbon reversal risk, enhancing project economics during the critical early stages of a project by helping reduce the need for buffer contributions.
The insurance policy supplements, and where applicable may help reduce or replace, buffer reserve requirements through insured risk transfer.
Why buy Non-Permanence Risk Insurance?
Transfer reversal risk: Helps transfer the financial consequences of covered carbon reversal events to a rated insurance balance sheet.
Unlock more saleable credits: Helps reduce the need to commit credits to buffer reserves, allowing a greater share of credits to be sold during the pivotal early stages of project operation.
Improve project economics: Helps strengthen early-stage cash flows and supports a more risk-adjusted return profile.
Build market confidence: Helps provide additional underwriting-led stamp of confidence beyond standard validation and verification.
What impact will it have on your project?
Financial benefit: Improved early-stage project economics through stronger cash flows.
Operational benefit: Greater capacity to fund development and operational ramp-up costs.
Strategic benefit: Competitive differentiation through early-adoption.
When should you consider buying it?
Capital-efficient reversal risk management
Verra Durability Pilot
Buyer durability requirements
Premium carbon credit offerings
