Traditional expropriation coverage protects against nationalizations, confiscations and creeping expropriation (regulatory actions). Our regulatory risk product can protect against regulatory actions specific to renewable resources projects, such as:
- Material changes to feed-in tariffs
- Critical changes to taxation or other regulations affecting the project’s ability to operate
- Revocation of licenses or permits necessary for the operation of a project
- Improper interference with carbon credit generation (under the UN Clean Development Mechanism or voluntary standards) or sales
- Repudiation of a concession, technical assistance, or forestry-related services agreement by a foreign government
Project Profile: OPIC insurance helps protect the rain forest in CambodiaOPIC developed a political risk insurance product to cover private sector investment in forestry projects, including Reducing Emissions from Deforestation and Forest Degradation (REDD) projects, as well as afforestation and reforestation. In 2011, OPIC entered its first contract for this type of coverage. The deal will provide political risk insurance to Terra Global Capital, an investor in a project that will protect large swaths of forest in Cambodia through the sale of offset credits in international carbon markets. Read more about the project here.