Oka Launches Revolutionary Article 6 Carbon Credit Insurance, Securing Global Climate Markets
In a significant development for the burgeoning global carbon market, Oka, The Carbon Insurance Company, has unveiled a pioneering insurance solution called Corresponding Adjustment Protect. This groundbreaking policy is specifically designed to protect voluntary carbon credits traded within compliance markets, providing vital security for project developers and their clients.
Corresponding Adjustment Protect acts as a shield against the risk of Article 6 revocation. This risk arises when a host country fails to apply the necessary corresponding adjustment to issued credits, potentially jeopardizing the validity of the credits and creating financial and reputational damage for developers and buyers.
Underwritten by Lloyd’s Oka Syndicate 1922, this innovative insurance policy has garnered support from a growing number of leading Lloyd’s syndicates, including Apollo and Hiscox. The policy’s placement was facilitated by the expert broker, Guy Carpenter. This strong alliance underscores the insurance industry’s increasing commitment to developing the robust infrastructure needed to scale global carbon markets effectively.
Hayley Budd, Innovation Class Lead at Apollo, highlighted the significance of this initiative, stating: “We’re delighted to be supporting Oka to insure carbon markets, which represent both an exciting market opportunity and a growing climate imperative. Besides being a Lloyd’s syndicate, Oka has been at the vanguard of building innovative solutions to complex risks in this space, making them a natural partner for us. Through this lineslip, we can provide the insurance capacity required to protect buyers and sellers and help scale climate solutions.”
Chris Slater, Oka Founder & CEO, emphasized the critical role of Corresponding Adjustment Protect in facilitating market growth, saying: “Together with Guy Carpenter and this leading cohort of Lloyd’s syndicates, we’re excited to promote the success of carbon markets under compliance schemes, such as the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). Developers need third-party assurances — such as Corresponding Adjustment Protect — to access the market, and buyers, to avoid unexpected regulatory and litigation risk. Supported by this lineslip, our dedicated policy coverage will help both parties navigate a new market with confidence.”
Project developers are encouraged to reach out to Oka directly to receive a quote for this crucial insurance protection. By providing confidence and mitigating risk, Oka’s Corresponding Adjustment Protect is poised to play a pivotal role in the expansion and success of global carbon markets, contributing to a more sustainable future.