DelAgua And Oka Join Forces In Compliance Carbon Markets With New Product

DelAgua And Oka Join Forces In Compliance Carbon Markets With New Product - Carbon Herald

DelAgua and Oka have recently announced a collaboration that will revolutionize compliance carbon markets with a new insurance product. 

Oka, The Carbon Insurance Company™ (Oka) has joined forces with the prominent cookstove project developer DelAgua to introduce a groundbreaking insurance solution known as Corresponding Adjustment Protect™. 

Underwritten by Oka Syndicate 1922 at Lloyd’s, DelAgua played a crucial role in designing this unique insurance solution and is the initial developer to utilize it.

DelAgua has been at the forefront of securing Letters of Authorization (LoAs) from the Government of Rwanda for their clean cookstove initiatives, making them the sole Corresponding Adjustment-tagged credits on the VERRA platform, which is a CORSIA registry that has received conditional approval.

The collaboration between the two companies combines DelAgua’s expertise in obtaining LoAs with Oka’s innovative solutions for carbon credit compliance.

With the introduction of the Corresponding Adjustment Protect product by Oka, purchasers can now have reassurance in mitigating the risks associated with the delivery of Corresponding Adjustments in the carbon markets.

Relevant: Oka Insurance Secures $10 Million In Latest Funding Round

The Corresponding Adjustment, a mechanism put in place to avoid double counting when credits are transferred between different countries, is mandatory for any voluntary credits sold in compliance markets such as CORSIA. 

If the country where the credits originate does not submit or implement a Corresponding Adjustment, or withdraws authorization, thus making the credits invalid, Corresponding Adjustment Protect offers financial compensation to the holder of the credits.

In other words, this solution provides protection for credit buyers and sellers from the risk of Article 6 revocation that may occur if a Corresponding Adjustment fails.

Read more: “Carbon Finance Is A Major Opportunity To Transform Lives At Scale,” Euan McDougall, Chief Operating Officer, DelAgua

This new product not only ensures compliance with ICAO’s criteria for CORSIA participation but also provides a valuable tool for companies looking to actively participate in carbon offsetting initiatives.

This insurance option is expected to drive the market forward, allowing for greater scope and influence for projects financed by carbon credits that are improving livelihoods and the environment in impoverished communities worldwide.

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