Protected by Oka’s Carbon Protect™ insurance solution, Cloverly’s exclusive new suite of insured credits opens the voluntary carbon market (VCM) to a new audience.
Park City, UT and Atlanta, GA January 18, 2024 / PRnewswire / Oka and Cloverly, the leading digital platform for climate action, are first to market with a new brand of insured carbon credits for the VCM.
Cloverly will offer the insured credits — available exclusively to 300+ global enterprises — pre-wrapped in Oka insurance, providing first-of-their-kind reversal and invalidation protections for buyers of the carbon credits.
Through its climate action platform, Cloverly customers already benefit from seamless access to high-integrity projects, vetted to a high standard by in-house climate scientists. The new tranche of insured credits grants buyers an additional marker of quality and protection, providing financial compensation in the event of certain covered unforeseeable and unavoidable post-issuance risks.¹
Critical Juncture
The development comes at a high-stakes moment for climate action, where effective carbon markets play a vital role. The Intergovernmental Panel on Climate Change (IPCC) acknowledges that “the deployment of carbon dioxide removals to counterbalance hard-to-abate residual emissions is unavoidable if net zero emissions are to be achieved.” Even with the necessary emissions reductions in place, the world must remove an estimated 10 GtCO2, annually, to meet its net-zero targets by 2050.
New disclosure regulations — notably the impending SEC Climate Disclosure Rule and recent California Bill AB 1305 — build on the incontrovertible case for carbon credits. Nonetheless, lack of education and awareness have created barriers to entry which can deter prospective customers. These barriers underscore the need for greater risk mitigation and market maturity.
Complementary Partnership
Speaking at COP28, US climate envoy John Kerry recently stressed the issue at stake, stating “I have become a firm believer in the power of carbon markets to drive increased climate ambition and action, and the VCM is a vital tool to keep 1.5C in reach.”
To support the evolution of a market that Bloomberg estimates will be worth $1 trillion by 2037, Oka and Cloverly are improving access and ease, as well as trust and transparency, for buyers seeking to scale their impact. By coupling Cloverly’s innovative platform with Oka’s risk infrastructure, the alliance creates a seamless and more secure route to climate action.
Commenting on the alliance, Cloverly CEO Jason Rubottom said: “Global leaders rely on Cloverly to bring them the most innovative climate solutions. To that end, we’re delighted to be working with Oka to launch a new suite of insured carbon credits. The market is evolving fast, but perceived risk continues to deter some companies from turning commitment into action. Insurance — once a missing pillar in the VCM – bridges the gap and builds much needed trust in the market.”
Commenting on the alliance, Oka Founder & CEO Chris Slater said: “It’s exciting to be announcing our inaugural carbon credit distribution partner in the same month that Oka syndicate 1922 goes live. In terms of cultural alignment, we couldn’t have hoped for a better partner with which to begin distributing insurance-wrapped credits. Like us, Cloverly is focused on elevating access and integrity across the VCM. Like us, they’re motivated by urgency.”
About Oka, The Carbon Insurance Company™
Oka is a global INSURTECH100 and ESGFINTECH100 company.
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Media Contact
Chris Slater
chris.slater@carboninsurance.co
LEGAL DISCLAIMER
Carbon 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.
¹reversal and invalidation and coverage is subject to the terms and conditions of an applicable policy
