Non-Permanence Risk Insurance
Protection against the risk of carbon reversal at the project level
Non-Permanence Risk Insurance protects against carbon reversal risk, working alongside Carbon Standard requirements to reduce or replace buffer reserve requirements. In this way, Non-Permanence Risk Insurance can improve project economics by enabling more carbon credits to be sold during the critical early years of a project.
For projects that aren't required to contribute to a buffer, Non-Permanence Risk Insurance can be utilised directly between the developer and buyer of carbon credits to manage reversal risk.
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 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.
Use cases: when should you consider buying it?
Capital-efficient reversal risk management
Verra Durability Pilot
Buyer durability requirements
