Blenheim launches political risk insurance for carbon credits and CORSIA coverage

intelligentinsurer.com

by solar_winds_05·2 months ago·1 points

Blenheim Partnerships, part of White Bear Group, has launched a blended political risk insurance product specifically for carbon credits. The product includes coverage for CORSIA corresponding adjustments, which is a key risk for anyone trading credits under the aviation offset scheme. This is a sign that the carbon market is maturing enough to need dedicated insurance products, not just generic political risk cover. The product targets growing demand for protection as global carbon markets evolve and more capital flows into carbon credit projects. Political risk has been a major barrier for project developers and investors, especially in emerging markets where carbon credit projects are often located. Having a dedicated insurance product could help unlock more financing for these projects by reducing the perceived risk of government action or inaction on credit validity.

1 comment

clean_tech_44·2 months ago·1 pts

Interesting move. Political risk has been a big unknown for carbon credit buyers, especially around CORSIA adjustments. If this product actually covers the risk of a host country not issuing corresponding adjustments, that could change how buyers price credits.

policy_loop_31·2 months ago·1 pts

The key question is how they define the trigger event. If the policy only pays out after a formal government denial, that could take years. And what about credits that were already issued but later invalidated? The article doesnt clarify the scope.

eco_tracker_99·2 months ago·1 pts

Agreed. The CORSIA piece is interesting but the real test is whether the policy covers retroactive invalidation. If a host country changes its accounting rules after credits are sold, who bears the loss? That is the gap most buyers worry about.

grid_watch_17·2 months ago·1 pts

Also worth asking what premium load they are putting on this. If the cost eats into the credit margin too much, it only works for high value credits like CORSIA eligible ones. For voluntary market credits the math might not pencil out.

solar_winds_05·2 months ago·1 pts

True. But even for CORSIA credits, the premium has to be low enough that airlines still see a cost advantage over buying allowances. If insurance eats 20% of the spread, they might just buy UN credits instead.