Everyone hopes to meet their delivery obligations. Will you?
For developers
De-risk your delivery obligations to buyers and investors, and secure coverage against unexpected shortfalls when they happen
For investors
Protect the capital you put at risk into projects, providing downside protection to project return profiles
For lenders
Make projects bankable by pairing Shortfall Insurance with an offtake, bringing certainty to project cashflows
How Shortfall Insurance works
We first evaluate a project's expected carbon sequestration with our Carbon Risk Model, a proprietary, bottom-up model incorporating historical climate data and future trends. That Model tells us the likely carbon credits to be generated by a project and how those credits might be impacted by events like wildfires, storms or droughts.
At the end of the cover period (timed with the project's registry verification report), the verifier takes a measurement of the project's production and determines how many credits it may issue.
If the number of credits that can be issued is less than the number of expected credits because of a natural hazard, the insurance will pay out the difference between the actual and expected issued credits in cash or carbon credits we can help you source.
Example
You're an afforestation developer who has promised 200,000 credits to an offtaker in five years. Due to persistent drought in your project area, your biomass growth was slower than predicted. When your delivery is due, you only have 150,000 credits to deliver to your buyer. With a Shortfall Insurance cover, you would receive 50,000 credits (or their agreed cash value) you are missing, so you can deliver the full 200,000 credits to your buyer.
What people say
“CarbonPool is the magic solution for large corporate buyers. We know we have risks and we know we need an insurance solution.”​​​​​​​​​
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Global Head of Climate for large Swiss carbon removal buyer
“We could never issue a loan to a nature-based project without insurance to mitigate the delivery risks, and we prefer CarbonPool's risk solutions as a partner.”​​​​​
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Project finance lead at a global commercial bank​
"We love CarbonPool and see you as the most important company to develop the risk mitigation part of our business with us. With Shortfall Insurance, we can guarantee that [buyer] can receive the tons of credits they expected before."
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CFO of the largest afforestation developer in South America
