Insurance for carbon credits: Verra pilot makes it a 'no-brainer' for developers, says CarbonPool

Carbon credit project developers are increasingly turning to insurance in a Verra pilot program that covers permanence risk. CarbonPool executives call the option a 'no-brainer' because it allows developers to monetize more credits and improve project cashflows. The pilot addresses a key barrier in carbon markets: the risk that credits might be reversed due to natural disasters or poor management. By insuring against permanence risk, developers can offer buyers greater confidence in the long-term storage of carbon, which could unlock more capital for projects. This is especially relevant for nature-based solutions like forestry, where the threat of fire or disease is real. The move signals growing maturity in the voluntary carbon market as financial tools evolve to support real decarbonization.