Oka insures permanence: Reversal risk cover under Verra's durability pilot

Oka provides the capacity for one of the first policies approved under Verra's durability pilot, giving carbon project developers a regulated alternative to buffer pool contributions.

A new way to manage reversal risk

Every nature-based carbon project carries reversal risk: the possibility that carbon stored in trees or soil is released back into the atmosphere through fire, drought, disease, or other perils. Until now, registries have managed this risk through pooled buffer accounts, requiring projects to set aside a significant share of their credits (typically 10–30% of supply) as a communal reserve, regardless of the project's individual risk profile.

That approach works, but at a cost. Credits held in the buffer pool cannot be sold, monetised, or financed against. For developers, it is capital locked away for decades; for the market, a substantial slice of credits removed from circulation.

In December 2025, Verra, the world's largest carbon crediting programme, introduced an alternative: transferring reversal risk to a regulated insurer rather than locking credits away. Under its three-year durability pilot, participating projects can use insurance in place of buffer pool contributions.

What we did

Oka partnered with CarbonPool to develop a measured reversal insurance product that meets Verra's durability pilot insurance criteria. The cover indemnifies projects against the reversal of issued credits, with claims paid in cash. For a project enrolled in the pilot, it replaces the buffer pool contribution entirely, unlocking the full credit supply for sale or financing, at a fraction of the cost of self-insurance.

The policy is approved and available today.

How developers can participate

Participation in the durability pilot is managed by Verra. The process:

1. Submit an expression of interest to Verra: a short document (1–3 pages) covering your motivation for participating, a brief project summary, your chosen approach (insurance), the vintages you propose to include, any prior buffer pool contributions, and the estimated date of your next verification. EOIs are accepted on a rolling basis.
2. Provide evidence of an active insurance policy: either with the EOI or once available, for screening by Verra. Evidence is also submitted as part of the verification approval request for the monitoring period that includes piloting.
3. Contact Oka directly to arrange cover.

Eligibility applies: projects must pass the relevant Non-Permanence Risk Tool (NPRT) assessment, and AFOLU projects must meet criteria including a minimum 40-year project longevity. Projects are not required to contribute to the pooled buffer account while using an eligible alternative approach, though prior contributions cannot be released.

The pilot runs for three years and is open to Agriculture, Forestry and Other Land Use (AFOLU) and Geological Carbon Storage (GCS) projects registered under the VCS Program.

Why it matters

Insurance-based permanence is a structural shift for carbon markets. It replaces a blunt, one-size-fits-all reserve with risk-priced, regulated cover, rewarding well-managed projects, improving project economics, and bringing insurance-market discipline to permanence claims. Verra is the first mover; other major registries are now exploring similar approaches.

Oka exists to make carbon markets investable, so that more capital can come to climate solutions. Providing capacity for one of the first approved policies under the durability pilot is one more way in which we are putting that mission into practice.

Get in touch

If you are a project developer interested in using insurance in place of buffer pool contributions, or simply want to understand whether your project is eligible for the pilot, speak with us today.