The Climate Action Reserve Partners with Parhelion Underwriting [Manufacturing Close – Up]

The Climate Action Reserve and Parhelion Underwriting, announced a strategic alliance to support the delivery of an insurance product for compliance offset credits in California's Cap-and-Trade Program.

According to a release, under this alliance, Parhelion is offering insurance against invalidation for compliance offset credits that were transitioned from credits originally issued by the Reserve and the Climate Action Reserve will share its unrivalled experience and insight in to North American carbon offset projects, thereby, supporting the market development and helping its clients solve a critical risk issue.

"Invalidation of offset credits has been a concern for the market, especially for compliance buyers. While the Reserve has a well-established reputation for its knowledge and experience in reviewing offset projects and ensuring that offsets have real environmental integrity, we are always looking for ways to further protect our account holders and market participants. So, we are very excited to enter this agreement with Parhelion and be a part of this pioneering initiative," said Gary Gero, President of the Climate Action Reserve.

The insurance product, Parhelion California ARB Offset Credit Invalidation Insurance, covers ARB Offset Credits (ARBOCs) that were transitioned from Reserve-issued Registry Offset Credits (ROCs) or Early Action Offset Credits (EAOCs). The insurance underwrites the risk of invalidation of ARBOCs, removing the financial risk associated with this from the holder of the offsets. This private insurance of the most trusted offset credits provides the assurance and security being sought by the market.

"We saw a definite need in the market for insurance covering offsets in California's cap-and-trade program. Not wanting to commit to a risky move ourselves, we conducted exhaustive research into the offsets program and found the Reserve has an outstanding history of thoroughly analyzing projects and issuing only high quality offset credits. We are delighted to be benefiting from the Climate Action Reserve's extensive experience and knowledge. It will give us the opportunity to provide their clients with even greater confidence in the offset created," said Julian Richardson, CEO of Parhelion Underwriting.

The offsets program of California's cap-and-trade market represents a key means for regulated companies to keep their costs of compliance manageable, which means extra costs are not passed on to consumers. It also provides a way to incentivize non-regulated industries to reduce their emissions. Parhelion's offset credit insurance provides additional confidence for buyers and sellers to participate in this program.

The Climate Action Reserve is an offset registry to serve the carbon markets.

Parhelion Underwriting Limited is a specialist insurance business focused on developing and implementing risk finance and insurance solutions for the global carbon markets and the wider climate finance sector.

More information:

climateactionreserve.org

parhelion.co.uk

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