REVERSAL RISK SUITE
Non-Permanence Risk Insurance
Protection for project developers against net reversal risk 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. By enabling more credits to be sold during the critical early years of a project, Non-Permanence Risk Insurance can improve project economics.
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.
Improve project economics
Helps strengthen early-stage cash flows and supports a more risk-adjusted return profile.
Unlock more saleable credits
Helps reduce the number of credits committed to buffer reserves, more credits to be available for sale during the pivotal early stages of project operation.
Build market confidence
Helps provide additional confidence beyond the existing risk management mechanisms adopted by Standards.
How the policy impacts the 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.
COMPETITIVE DIFFERENTIATORS
All project types are eligible for coverage
Enables transition to long-term, cost-effective reversal liability management
Payment of claims in cash or carbon
KEY USE CASES
Capital efficiency in reversal risk management
Unlocking credits to improve revenues
Verra's Durability Pilot
Buyer durability requirements
