CTVC: Insurance, the icing on the capital stack cake

Carbon projects do not become bankable just because demand exists. They become bankable when someone can price the risks properly.

“We wrap these issued credits with our insurance product, making them more appealing in the market. It’s like giving the credit a quality boost and a safety net for the buyers.”

In Sightline Climate, Oka Founder and CEO Chris Slater explains why insurance matters across the full carbon-project lifecycle, from the uncertainty of getting a project running to the risk that issued credits later lose value through reversal or invalidation. He also lays out Oka’s approach: price the risk at project level, distinguish good projects from bad ones, and wrap issued credits with cover at the point of sale so buyers get both a quality signal and a safety net.

“When you start a project, from day one to its end, there’s always uncertainty… Insurance becomes essential across the board, so we’re juggling risks throughout the project lifecycle.”

The piece is also a useful look at why specialist MGA models are better suited to this market than slower, larger carriers that want decades of historical data before they move.

Read the full article on CTVC: Insurance, the icing on the capital stack cake.