Clients & Case Studies

Each client’s needs are different and therefore the way we work with each client is different.

The one thing that is consistent is our service ethic which is exclusively client-focused.

Innovative Financing for Refugee Crises

Issue: There are an estimated 25 million refugees who have fled persecution, conflict and the consequences of climate change. The world needs innovative new financing mechanisms that are more efficient, equitable and sustainable.

Parhelion’s solution: Parhelion’s CEO and founder, Julian Richardson, was delighted to be involved in producing this report, as a result of two innovation labs bringing together global policy experts from across development, humanitarian, financing and the insurance sectors, which proposes a new system of financing to respond quickly and effectively to crises. This collaboration between the International Rescue Committee and the Centre for Disaster Risk is an inspiring read with forward by Secretary of State Rory Stewart and David Miliband.

Links to appendices to the report –

Retrospective Expenditure Analysis; Case Study – Bangladesh; Case Study – Jordan; Case Study – Kenya; Global Challenge; Economics of Alternative Expenditure; Summary of Innovative Forecasting Tools; Summary of Data Sources; Information Based Solutions.

Forest Resilience Finance

Issue: The world’s temperate forests act as an important carbon sink, absorbing 34% of global carbon accumulation in intact forests and 65% of the global net forest carbon sink. Recent indications are that temperate forests and trees are beginning to show signs of climate stress, including a reversal of tree growth enhancement in some regions; increasing tree mortality; and changes in fire regimes, insect outbreaks, and pathogen attacks. To counteract these trends and to help forest ecosystems to adapt to the changing climate, it is key that sustainable management and protection of forests today includes ‘near to nature forest management measures’ that strengthen the adaptive capacity of the forest.

Parhelion’s solution: As co-author of this report, Julian Richardson (CEO & founder of Parhelion) worked on this study commissioned by the Government of Switzerland, Federal Office for the Environment (FOEN) to accompany a discussion and side event on Forest Adaptation Finance at UNFCCC COP 24. It is hoped that adoption of the report’s recommendations will help forests adapt to climate change.

Climate and Clean Energy Policy

Issue: Slow uptake of geothermal product development in East Africa despite existing public sector interventions.

Parhelion’s solution: Detailed analysis of existing public interventions combined with regional risk analysis to design and complement intervention on behalf of US AID Power Africa

Geothermal Development Drilling Risks

Issue: The development of geothermal resources for power production represents an attractive, low-carbon source of base-load power. However, geothermal developers face significant risks to proving the resource, particularly at the exploration phase, but also during the development drilling phase, which is characterized by high capital commitment requirements.

Parhelion’s Solution: On behalf of the World Bank, Parhelion developed an innovative risk finance structure to reduce the risk and allow a larger pool of investors to provide capital to this crucial project phase.

California Carbon Market Invalidation Regulatory Risk

Issue: The California cap and trade market has had the benefit of learning from the European Emissions Trading Scheme and Kyoto. It has used this knowledge to include ‘invalidation provisions’ within its carbon offset project rules and regulations; however, this created an uncertain asset for buyers of carbon offsets.

Parhelion’s Solution: Parhelion developed an insurance product to indemnify the owners of any Californian Carbon Offsets in the event of invalidation. This removed uncertainty from those assets and increased the potential liquidity for the Offset market.

European Carbon Market Regulatory Risk

Issue: Political risks are typically associated with emerging market investments but clean energy projects usually rely on some form of policy-backed revenue stream. Changes to these policies are not normally covered in the political risks market; however, when the EU changed its policy on eligibility criteria for carbon assets, investors and carbon offset buyers were left exposed to significant policy risk.

Parhelion’s Solution: On behalf of a leading investment bank, Parhelion designed and executed the world’s first ‘policy risk’ insurance for European Union carbon markets.

Energy Efficiency

Issue: The potential for reduced energy through ender user efficiency improvements is well recognised. Equally well recognised is the fact that the uptake and implementation of energy efficiency projects has been significantly below its potential.

Parhelion’s Solution: Under a mandate from a major insurer, Parhelion defined an insurance solution and identified a route to market for the product. This included market definition, policy wording review and partner strategies.

Carbon Capture and Storage

Issue: Carbon Capture and Storage (CCS) is recognised to be an important potential solution to allow fossil fuels to play an ongoing role in the future of the European energy mix. Parhelion was asked by the industry association to identify the opportunities for insurance solutions to support investment in this sector.

Parhelion’s Solution: Parhelion ran a defined risk mapping process engaging with a range of stakeholders to identify and define risks and propose possible solutions. The deliverable for this engagement was a report defining the risks and high level identification of risks that may be suitable for transfer.