World Bank to Offer Political Risk Insurance to Carbon Investors

The World Bank plans to offer insurance to investors in carbon offset projects in developing countries, to protect against the risk that government intervention could wreck their expected returns.

The group’s insurance arm, the Multilateral Investment Guarantee Agency, is “working with investors on some live projects,” UK head and global carbon markets lead Deepti Jerath said in an interview. “We are responding to it more on a case by case basis, but with a view to creating some standardization in the market.”

Political risk has become a more pressing concern in recent months, as governments have grown more aware ...