CarbonPool and Oka have brought the first insurance placement to market under Verra’s durability pilot, introducing a new way for carbon project developer Invert to manage reversal risk. The arrangement could allow more credits to be sold or used to secure financing, while insurance provides a mechanism for replacing credits affected by lost carbon storage.

Carbon projects can lose their climate benefits when stored carbon returns to the atmosphere. Forest fires, land-use changes and leaks from geological storage sites can undermine previously credited emissions reductions or removals.

Traditionally, Verra has addressed this risk through buffer pools, which require developers to contribute a portion of issued credits to a shared reserve. These credits cannot be sold. Under the new arrangement, qualifying insurance can replace that contribution, potentially freeing up more credits for commercial use. Verra introduced the three-year pilot in December 2025 to test insurance and fund-based alternatives.

CarbonPool structured the insurance placement, while Oka supplied underwriting expertise and insurance capacity through Lloyd’s. Financial details of the arrangement were not disclosed in the announcement.

The model could reduce the amount of capital tied up in unsold credits, improving liquidity for developers seeking to finance new projects. However, insurance premiums and policy conditions will determine the actual financial benefit.

The deal comes as the voluntary carbon market seeks stronger ways to demonstrate that emissions reductions and removals endure over time. Insurance could diversify existing safeguards, but it does not prevent a reversal from happening. It provides a financial mechanism to address the resulting loss.

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