Oka, The Carbon Insurance Company™(Oka) and DelAgua enter the compliance carbon markets with Article 6 insurance
Oka's Corresponding Adjustment Protect™ protects CORSIA buyers from double-claiming risk; DelAgua is first-to-market with CORSIA aligned credits backed by insurance
PARK CITY, Utah, and LONDON, June 6, 2024 /PRNewswire/ -- Oka, The Carbon Insurance Company™ (Oka) and leading cookstove project developer DelAgua have partnered on a world-first insurance solution, Corresponding Adjustment Protect™, to protect against the risk of an authorized credit losing its Article 6 authorization due to the Corresponding Adjustment not being made by the host country. The policy is underwritten by Oka Syndicate 1922 at Lloyd's. DelAgua was a key design partner and is the first developer using the insurance solution.
DelAgua has led the market in securing Letters of Authorization (LoAs) with the Government of Rwanda for their clean cookstove projects. These remain the first and only Corresponding Adjustment tagged credits on VERRA, a conditionally approved CORSIA registry.
Oka created Corresponding Adjustment Protect to provide confidence to buyers by de-risking concerns around delivery of Corresponding Adjustments, a newly emerging feature of the carbon markets, as well as to meet ICAO's requirements for CORSIA eligibility. Furthermore, the insurance solution is also a catalyst to develop the market, enabling greater scale and impact for carbon funded programmes transforming lives and nature in some of the poorest communities across the world.
Oka's Corresponding Adjustment Protect™ protects credit buyers and sellers against the risk of Article 6 revocation due to a failed Corresponding Adjustment. The Corresponding Adjustment is an accounting mechanism designed to prevent double counting by nation states transferring credits internationally.
It is a prerequisite for any voluntary credit sold in the compliance markets, including CORSIA. In the event the host country fails to submit or apply a Corresponding Adjustment or withdraws prior authorization, rendering credits ineligible, Corresponding Adjustment Protect provides financial compensation to the credit holder.
Commenting on the partnership, Neil McDougall Co-Founder and Chairman DelAgua: "DelAgua has led the way in achieving LoAs because of our close partnerships with governments that lie at the heart of what we do. We continue to innovate through our partnership with Oka which brings together their insurance expertise and our carbon markets experience to develop Corresponding Adjustment Protect and allows us to offer the security buyers are seeking alongside the high integrity and impact that differentiates DelAgua's credits. I see Corresponding Adjustment Protect as an exciting innovation that will be a real catalyst for growth across the market."
Oka Founder & CEO Chris Slater added: "We're excited to be the world's first insurance provider to underwrite Corresponding Adjustment failure, the chief unaddressed risk facing buyers and sellers in the burgeoning compliance markets. In Corresponding Adjustment Protect, Oka alleviates due diligence on buyers and the burden of proof for developers. In so doing, we aim to accelerate confidence in and the climate impact of this promising market."
Vitol's Head of Emissions Trading, Michael Curran commented: "Transparency and consistency are critical to the development of carbon markets. The Corresponding Adjustment Protect policy offered by Oka and developed with DelAgua provides reassurance to customers and corporate partners and will facilitate the development of new carbon projects. We look forward to including this product in our market offering."
Media Contact
Kate Bruges
DelAgua Communications Director
[email protected]
Euan McDougall
DelAgua COO
[email protected]
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About Oka, The Carbon Insurance Company™
Oka is a global INSURTECH100 and ESGFINTECH100 company.
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Media Contact
Chris Slater
Oka Founder & CEO
[email protected]
LEGAL DISCLAIMER
Corresponding Adjustment Protect™ is an insurance policy available to certain eligible owners of carbon credits in jurisdictions where Carbon Insurance Agency, LLC is licensed as a surplus lines insurance producer. Eligibility is determined based on applicable underwriting criteria, and coverage is always subject to the terms and conditions of an applicable policy. Carbon Insurance Agency, LLC has authority to enter into contracts of insurance on behalf of the Lloyd's underwriting members of Oka syndicate 1922 which is affiliated with Carbon Insurance Agency, LLC and managed by Asta Managing Agency, a managing agent at Lloyd's.
SOURCE Oka, The Carbon Insurance Company
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