CCarbon: Oka’s approach to carbon insurance

What does carbon insurance actually look like once you get past the pitch deck language and into the market plumbing?

“We decided to treat the carbon markets like any other, and in every other market, insurance is a vital means of securing the assets of every participant.”

In this interview with CCarbon, Oka Senior Vice President of Growth Zachary Kane walks through how Oka approaches carbon-credit risk, with particular focus on Corresponding Adjustment Protect and the emerging CORSIA market. The conversation covers why Oka concentrates on post-issuance credits, how the team worked with registries as corresponding adjustment risk became harder to ignore, and why insurance may offer a cleaner answer than buffer pools in a supply-constrained market.

“There’s a rush towards the CORSIA tag, and insurance will be a big part of that… We’re creating an environment where corporations are comfortable buying carbon credits. If we can create more security in the CORSIA market, we believe more developers will go for LoAs and pursue the opportunity.”

It is also a useful look at the operational detail behind the product, from what makes a Letter of Authorisation insurable to what happens when a claim is triggered and a payout is made.

Read the full article in CCarbon.