Corresponding Adjustment Protect

Corresponding Adjustment Protect is designed for carbon project developers supplying CORSIA-aligned credits under Verra VCS or Gold Standard. Under both programmes’ insurance pathways, the developer (or an affiliate) signs the required undertaking and provides a certificate of insurance for an approved policy to evidence its ability to compensate or replace units if a double-claiming issue arises.

Eligible emissions units (EEUs) issued by an authorised registry.

Eligible CORSIA projects are those that can evidence host country authorisation and corresponding adjustment readiness. In practice this means a signed Letter of Authorisation, issued credits with defined serial number batches, and the relevant documentation lodged with the UNFCCC. We also look for a credible pathway to a corresponding adjustment in the host country’s reporting, including an initial report, a completed national inventory, and an established framework for biennial transparency reporting and Article 6 implementation.

Credit eligibility loss due to letter of authorisation revocation or corresponding adjustment failure.

Exclusions include registry collapse and project failure, in addition to standard exclusions (War, Nuclear, Chemical, Biological, Radiological).

Yes. The CAP policy can be customised to respond on a “first transfer” basis, meaning it triggers at the first point the developer must deliver a CORSIA-usable outcome, rather than after an extended chain of disputes or remedies. In practice, the trigger is tied to the first definitive failure of LoA validity and/or the corresponding adjustment outcome for the specified retired serial number batches, so the developer can replace units or settle promptly, per the schedule.

The policyholder is the project developer or programme participant that is contractually required to deliver CORSIA-usable credits and to remedy any loss event, such as by replacing units or refunding the buyer

The insured is the project developer, who is required by the registry to replace credits if retired and then invalidated.

The insured interest is the developer’s performance obligation and associated financial exposure arising from Letter of Authorisation revocation or a failed corresponding adjustment outcome, as defined in the policy schedule.

Loss events include revocation of the Letter of Authorisation by the host country, or failure of the corresponding adjustment as recorded in the Biennial Transparency Report (BTR) where credits have already been retired. In these circumstances, a relevant registry action or determination is triggered, resulting in the retired credits being treated as unusable for CORSIA compliance. The policy sets out the required evidence and the basis for quantifying loss.

The claim is triggered when the registry issues an official determination that the already retired units are no longer usable for CORSIA because the Letter of Authorisation (LoA) has been revoked, or the required corresponding adjustment is not confirmed or not reflected in the relevant Biennial Transparency Report. That determination must prevent CORSIA use and create a replacement cost within the policy period.

In the event of a covered loss, Oka pays a cash settlement, enabling the developer to replace retired and now-ineligible credits with CORSIA-eligible credits.

The volume insured, multiplied by the monetary limit per credit.

Two years from credit issuance and first transfer, coinciding with the first Biennial Transparency Report (BTR).

The policyholder submits a claim to Oka with evidence of the loss event and the affected retired batches. As part of the claims process, the policyholder transfers ownership or rights in the deauthorised credits to Oka where required by the policy. Oka confirms the trigger and then pays the cash settlement for replacement, per the schedule.