London start‑up moves beyond carbon to insure green‑credit finance risks

A London‑headquartered carbon insurance start‑up has launched a suite of green‑credit insurance products under Lloyd’s syndicate paper, aiming to de‑risk long‑tenor pre‑payments, bonds and loans to help lenders, buyers and developers scale decarbonisation projects.

A London-headquartered carbon insurance start‑up has moved beyond its core carbon products and formally entered the green‑credit insurance market, unveiling a suite of coverages it says are designed to de‑risk capital earmarked for climate solutions. According to the company announcement on 18 August 2025 and reporting in the trade press, the expansion is pitched at buyers, lenders and project developers who need greater certainty to underwrite and scale decarbonisation projects.

The new offering, the firm says, covers a broad range of sustainable‑finance instruments: pre‑payment protection for transition projects that generate credits or clean power, buy‑to‑hold green and blue bonds, sustainability‑linked loans, letters of credit and repayment guarantees, and loans to corporates judged to be climate leaders. The company also highlighted that it will underwrite through Lloyd’s syndicate paper and combine market‑leading data analysis and AI‑led underwriting with sector specialists. In the firm’s announcement, its founder described the move as a “natural evolution” to meet demand for long‑tenor cover, while the newly appointed Head of Credit Underwriting—whose background includes roles at specialty underwriters and Lloyd’s markets—said clients seek “certainty…in both policy terms and carrier expertise.”

The rationale for product innovation is familiar across insurers and climate financiers: advance payments, forward purchases and long‑dated financing of nature‑based and engineered solutions carry delivery, natural‑hazard and political risks that deter private capital. Industry analysis published earlier this year argues that novel insurance structures—parametric covers, buffer pools, bespoke non‑delivery indemnities and other risk transfers—can make projects bankable and help attract long‑term capital into nature‑based solutions and other climate investments.

Larger incumbents and specialist reinsurers have already been active in this space. One major commercial insurer partnered with a climate‑tech buyer platform in 2024 to design a first‑of‑its‑kind product that insures multi‑year forward purchases of afforestation and reforestation credits, offering in‑kind replacement credits from a project buffer pool and financial compensation where necessary. That product was explicitly framed as a way to support five‑year forward contracts and to reduce non‑delivery exposures from weather, natural catastrophes and political events.

Brokers and advisory firms also set out the range of cover types that market participants need: pre‑payment non‑delivery indemnities, political‑risk protection, bank lender non‑payment insurance and post‑delivery cover for invalidation, non‑permanence and reversals. These established solutions are being adapted and repackaged to address the particularities of carbon and green‑credit markets, with the stated benefits of boosting lending capacity, protecting balance sheets and facilitating project finance.

The sector is also attracting specialist start‑ups and fresh capital. One Zurich‑based entrant closed a seven‑figure funding round in early 2024 to build capacity to underwrite carbon‑credit risks, emphasising in‑kind claim payments as a way to guarantee replacement credits. Such firms are positioning themselves as complementary to the wider insurance market by offering focused underwriting expertise and new claims constructs tailored to the integrity and permanence challenges of credits.

There are already practical examples of tailored underwriting being used to shore up buyer confidence. In mid‑2024 a brokered warranty and indemnity policy for carbon credits was placed on a forestry project in Ghana; the cover was cited as enabling the seller to charge a premium by assuring buyers of the credits’ legitimacy and delivery. That transaction has been referenced by insurers and buyers as proof that bespoke insurance can alter pricing and buyer behaviour in the voluntary market.

But insurers and market commentators caution that cover is not a panacea. Insurance can transfer many financial risks—natural catastrophe, political interference, counterparty non‑performance—but it does not erase the underlying integrity and reputational questions that have dogged parts of the voluntary carbon market. Industry analysis also stresses that markedly more capital will be required to meet nature‑based finance needs through 2030, and that insurance is one of several tools needed to mobilise private investment at scale.

For the new entrant, the test will be how quickly and credibly it can scale capacity, price long‑tenor risks, and work with developers, banks and corporate buyers to convert insured structures into financed projects. The firm says its aim is to unlock finance and replicate its carbon‑market traction across adjacent clean‑energy and green‑credit markets; whether that ambition translates into sustained underwriting appetite and measurable capital mobilisation will be closely watched by investors and project developers alike.

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Source: Noah Wire Services

Noah Fact Check Pro

The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.

Freshness check

Score:
10

Notes:
The narrative was published on 18 August 2025, with no earlier substantial matches found. The report is based on a press release from Oka, The Carbon Insurance Company, announcing their expansion into the green credit insurance market. ([carboninsurance.co](https://carboninsurance.co/oka-expands-climate-risk-solutions-with-green-credit-insurance-offering/?utm_source=openai)) Press releases typically warrant a high freshness score due to their timely dissemination of new information.

Quotes check

Score:
10

Notes:
Direct quotes from Oka’s founder and CEO, Chris Slater, and Head of Credit Underwriting, James Morrell, were found in the press release. No earlier instances of these exact quotes were identified, indicating potential originality. ([carboninsurance.co](https://carboninsurance.co/oka-expands-climate-risk-solutions-with-green-credit-insurance-offering/?utm_source=openai))

Source reliability

Score:
9

Notes:
The narrative originates from a press release by Oka, The Carbon Insurance Company, a London-based carbon insurance startup. While the company is not widely known, the press release is hosted on their official website, suggesting a direct and reliable source. ([carboninsurance.co](https://carboninsurance.co/oka-expands-climate-risk-solutions-with-green-credit-insurance-offering/?utm_source=openai))

Plausability check

Score:
8

Notes:
The expansion into the green credit insurance market aligns with Oka’s mission to de-risk capital for climate solutions. The report includes specific details about the new offerings and appointments, enhancing credibility. However, the lack of independent verification from other reputable outlets and the company’s limited public presence warrant cautious consideration.

Overall assessment

Verdict (FAIL, OPEN, PASS): OPEN

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary:
The narrative presents new information about Oka’s expansion into the green credit insurance market, with direct quotes from company representatives and specific details about the new offerings. However, the reliance on a single source and the company’s limited public presence necessitate further verification from independent, reputable outlets to fully assess the credibility of the claims.