BeZero Carbon, the global carbon ratings agency, and leading carbon insurance company Oka have today announced a partnership to help strengthen financial protections for corporate buyers in the voluntary carbon market (VCM).
BeZero Carbon will share the BeZero Carbon Rating, which provides an independent assessment of carbon credit quality on an eight-point scale, with Oka to help underwrite carbon project risk. Oka will then use BeZero’s world-leading data and insights to price its carbon credit insurance products, which it offers to buyers looking to purchase cover for their climate investments.
In practice, the integration of sophisticated ratings into insurance risk modeling will better inform corporate buyers about the risks of buying carbon credits in the VCM and will strengthen the financial protections available for those making carbon credit purchases.
Ultimately, this partnership will help increase confidence in the VCM and scale the market to reach its full potential, enabling buyers to purchase high-quality credits and use the market as a mechanism to channel capital to higher-quality projects.
“High-quality carbon credits are integral to the net zero transition, and by developing insurance frameworks which mitigate and acknowledge risk, we can increase confidence in the market and scale climate action. We’re proud that Oka is using the BeZero Carbon Rating to influence their underwriting calculations and strengthen financial protections across the market,” said BeZero Carbon’s CEO and co-founder, Tommy Ricketts.
“We’ve reached a pivotal milestone in our mission to insure every carbon credit. BeZero’s rating expertise seamlessly integrates with our proprietary underwriting platform, enabling us to provide customized carbon insurance solutions. Together, we eagerly anticipate fostering much-needed trust and transparency within the VCM,” said Oka’s Founder and CEO Chris Slater.