The Investor may be a company broadening its investment strategy or a fund investing solely in CDM and JI projects; both of these will wish at some stage to on-sell the ER’s. The current value assigned to the ER’s is, however, a small fraction of the expected future value because of the many risks of non-delivery.
By insuring the Investor against some of the risks of ER non-delivery, our policies give the Investor greater certainty of receiving the ER’s and therefore being able to realise the expected value of its investment. Our policies also give the Investor room to improve its offer for the investment if needed, because of the extra security (whilst also lessening the PC’s project finance needs).
Policies can include as few or as many insurable risk as the Investor wishes to lay off, although certain risks do become uninsurable depending on the size of the Investors equity holding in the project in the Project. Our policies can insure portfolios of projects, in which case we would underwrite the Investor in addition to the projects and “audit” its procedures.
Payment of claims is within 120 days of the contractual delivery date of the ER’s.
Policies and any discussions relating to them are confidential and should not be disclosed to the PC without our prior approval.
Premium is payable and is fully earned at inception.
We offer the following options:
1. Fixed value (agreed at inception)
2. Floating (market value at the date of scheduled delivery)
3. Replacement ER’s (or equivalent compliance instrument)
Policies incorporate appropriate deductibles, dependent on the interests of the Insured.
Pre-registration risks can be covered for the amount paid in advance to the PC for the ER’s.