CarbonPool and Oka bring first insurance placement to market under Verra’s durability pilot for Invert Inc.
SUMMARY
CarbonPool and Oka have placed the first carbon reversal insurance policy under Verra's durability pilot for Invert Inc., giving developers a robust and regulated alternative to buffer pool contributions.
KEY FACTS
The Verra durability pilot: Verra launched its three-year durability pilot in December 2025 to test alternatives, including insurance, to the buffer pool in Agriculture, Forestry and Other Land Use (AFOLU) and Geological Carbon Storage (GCS) projects. Under the insurance pathway, participating projects can use qualifying cover instead of contributing a proportion of newly issued credits to Verra’s buffer pool account.
The policy: Carbon project developer Invert is the first to use insurance instead of contributing credits to Verra's buffer pool.
What it covers: Reversal risk, i.e., the risk that carbon stored in forests, soils, and other natural systems is re-released into the atmosphere, requiring reversed credits to be compensated.
Key benefits: Reversal Insurance has significant financial and market benefits. By transferring the risk to an insurer, qualifying projects can make a greater proportion of their issuance immediately available for sale or financing, while ensuring that a regulated financial mechanism is available to respond if a reversal occurs.
Partners: CarbonPool developed the Verra-approved product and structured the placement, with Oka providing specialist underwriting expertise and Lloyd's insurance capacity.
PRESS RELEASE
CarbonPool and Oka bring first insurance placement to market under Verra’s durability pilot for Invert Inc.
Landmark new insurance product enables developer Invert to manage carbon reversal risk with cost-effective alternative to buffer pool contributions
CarbonPool and Oka today announced a new insurance placement under Verra’s durability pilot, marking the first use of insurance as an alternative to buffer pool contributions under the programme.
The policy, taken out by developer Invert, provides protection against the risk of reversal, i.e., the risk that carbon previously credited as stored or avoided is unexpectedly re-released into the atmosphere, requiring affected issued credits to be replaced.
Buffer pools have historically been the primary mechanism used to manage reversals in the voluntary carbon market, requiring developers to make large contributions of credits at each issuance. Credits contributed to a buffer pool cannot be sold or financed, limiting investor returns, developer cash flows, and buyer supply. As an alternative, Reversal Insurance has significant financial and market benefits. By transferring the risk to an insurer, qualifying projects can make a greater proportion of their issuance immediately available for sale or financing, while ensuring that a regulated financial mechanism is available to respond if a reversal occurs.
These placements bring together the expertise of two parties at the forefront of the carbon insurance market: CarbonPool, which has led the market conversation on regulated alternatives to the buffer pools, developed the Verra-approved insurance solution and structured the placement; and Oka provided specialist underwriting expertise and Lloyd’s insurance capacity.
Verra launched its three-year durability pilot in December 2025 to test alternatives, including insurance, to the buffer pool in Agriculture, Forestry and Other Land Use (AFOLU) and Geological Carbon Storage (GCS) projects. Under the insurance pathway, participating projects can use qualifying cover instead of contributing a proportion of newly issued credits to Verra’s buffer pool account.
Stewart Duncan, Managing Director at Oka, said: “Buffer pools have played an important role in managing reversal risk, but they also lock up credits that could generate revenue for developers and reach buyers. Insurance offers a more capital-efficient way to protect against risk while allowing a greater share of issuance to reach the market, strengthening both market integrity and liquidity. Collaborating with CarbonPool under Verra’s Durability Pilot is an exciting culmination of our early work on buffer replacements, bringing one of Oka’s earliest carbon-insurance use cases into a registry-approved application.”
Nandini Wilcke, COO & Co-Founder at CarbonPool, said: “We’re proud to see Reversal Insurance come to life after more than three years of intensive dialogue with registries and other market stakeholders, especially developers and buyers, in search of a better way to manage reversal risk. We have built a cost-effective solution which works for projects and offers regulated, professional risk transfer - supported by reliable insurance capacity provided by Oka. This first placement demonstrates that reversal insurance is a workable, robust alternative to the buffer pool system, creating an important precedent and pathway that other high-quality projects and registries can follow.”
Mandy Rambharos, CEO at Verra, said: “We are delighted to see CarbonPool and Oka’s insurance placement of Invert, whose projects have been approved to participate in Verra’s durability pilot. Markets grow by learning how to manage risk, and with this pilot Verra is actively advancing innovative ways for addressing durability. The first insurance placement under the pilot is proof that such regulated risk management is feasible, and scaling.”
Andre Fernandez, CEO at Invert Inc., said: “Seeing this first-of-its-kind insurance solution come to market represents the culmination of many years of effort to build a more capital-efficient carbon ecosystem. Replacing static buffer pools with regulated risk transfer unlocks vital capital for project growth while offering buyers the institutional credibility and market stability they need. We are excited to lead this shift under Verra’s durability pilot and demonstrate a clear, bankable path forward for high-integrity carbon development.”
Verra’s durability pilot is open to eligible AFOLU and GCS projects registered under the Verified Carbon Standard. Participating projects remain subject to Verra’s project eligibility, non-permanence risk assessment, and insurance requirements.
FAQ
What is a carbon credit reversal?
A carbon credit reversal occurs when carbon stored and accounted for in issued credits is re-released back into the atmosphere. When this happens, the affected credits must be replaced to maintain their climate impact claims.
What is the Verra durability pilot?
The Verra durability pilot is a three-year programme, launched by Verra in December 2025, that tests alternatives to the buffer pool for projects under the Verified Carbon Standard (VCS). Under the pilot, projects can choose to use insurance as an alternative to their buffer pool contribution.
Can CarbonPool provide Reversal Insurance under the Verra durability pilot?
Yes, CarbonPool's Reversal Insurance, backed by Lloyd's of London, has been approved by Verra for use under the durability pilot.
What are the benefits of CarbonPool's Reversal Insurance?
More credits to market: Instead of contributing part of each issuance to a buffer pool, a project can make more of its credits available for sale or financing straight away.
Protection for the whole issuance: Unlike the buffer pool, CarbonPool's Reversal Insurance covers the entirety of the piloted credits issued while the project is insured, not just a set-aside share.
Regulated, professional risk transfer: Reversal risk is transferred to a regulated insurer with an investment-grade rating, giving developers, investors, and buyers confidence that a reversal will be compensated for.
Do insured projects still need to contribute to the Verra buffer pool?
Projects participating the durability pilot do not need to contribute to the Verra buffer pool for those vintages that they have insured.
Which projects are eligible for Verra’s Durability Pilot?
The pilot is open to Agriculture, Forestry and Other Land Use (AFOLU) and Geological Carbon Storage (GCS) projects registered that request credit issuance before December 2028. There is no limitation on methodology or vintage.
To learn more about CarbonPool’s Reversal Insurance and whether your project is eligible under the durability pilot, get in touch with our team.
