DelAgua and Oka recently announced a partnership that will revolutionize compliance carbon markets with a new insurance product.
Okay, The Carbon Insurance Company™ (Oka) has joined forces with the prominent figures project developer cooking stove DelAgua introduces a breakthrough insurance solution known as Corresponding Adjustment Protect™.
DelAgua, underwritten by Oka Syndicate 1922 at Lloyd’s, was instrumental in designing this unique insurance solution and is the first developer to deploy it.
DelAgua has been at the forefront of obtaining Letters of Authorization (LoAs) from the Government of Rwanda for their clean cookstove initiatives, making them the only credits with Corresponding Adjustment tags on the VERRA platform, a CORSIA registry that has received conditional approval.
The collaboration between the two companies combines DelAgua’s expertise in obtaining LoAs with Oka’s innovative carbon credit compliance solutions.
With the introduction of Oka’s Corresponding Adjustment Protect product, buyers can now have peace of mind in mitigating the risks associated with supplying Corresponding Adjustments to the carbon markets.
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The Corresponding Adjustment, a mechanism introduced to avoid double counting when credits are transferred between different countries, is mandatory for all voluntary credits sold on compliance markets such as CORSIA.
If the country where the credits originate does not submit or implement a Corresponding Adjustment, or revokes the authorization, rendering the credits invalid, Corresponding Adjustment Protect will provide financial compensation to the holder of the credits.
In other words, this solution provides credit buyers and sellers with protection against the risk of Article 6 repeal, which could occur if a corresponding adjustment fails.
Read more: “Carbon Finance is a significant opportunity to transform lives at scale,” Euan McDougall, Chief Operating Officer, DelAgua
This new product not only ensures compliance with the ICAO criteria for CORSIA participation, but also provides a valuable tool for companies that want to actively participate in carbon offset initiatives.
This insurance option is expected to advance the market, providing greater reach and influence for projects financed by carbon credits that improve the livelihoods and environment of poor communities around the world.
