POLITICAL RISK SUITE
Political Risk Insurance
Protection against traditional political, host country, or other corresponding adjustments related risks
Political Risk Insurance protects carbon and natural capital stakeholders against specified losses arising from adverse government action or inaction. It can address traditional political risks and host-country or Article 6 uncertainties, helping create a more stable environment for cross-border investment.
Coverage can include confiscation or nationalisation, carbon credit export bans, revocation or dispute over carbon rights, revocation of a Letter of Authorisation or revocation/non-issuance of a corresponding adjustment, political violence and forced abandonment.
Why buy Political Risk Insurance?
Protect against government action
Covers specified political and host-country events that may undermine a project or a transaction.
Address Article 6 uncertainty
Helps manage risks related to Letters of Authorisation and corresponding adjustments.
Supports cross-border investment
Provides a creditworthy backstop for investment in politically uncertain markets (including equity).
Enable proactive participation
Gives developers, investors and lenders greater confidence to operate across jurisdictions.
How the policy impacts the project?
Financial
Protection against potentially significant losses caused by covered political events.
Operational
Greater certainty when developing, financing, or purchasing from projects in exposed markets.
Strategic
Broader access to international carbon and natural capital opportunities with structured risk mitigation.
COMPETITIVE DIFFERENTIATORS
Only carbon and natural capital insurer offering traditional political risk insurance, alongside carbon and natural capital-specific political perils
Political risk specialist/underwriters
KEY USE CASES
Cross-border equity investment into a location where political risk is a concern
Projects requiring LoA/Corresponding Adjustments to access different sales channels (e.g. Article 6 transactions, Singapore carbon tax, etc.)
