California ARB Offset Invalidation Insurance
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The Insured is the underlying project entity with the owner of the Offset being the Loss Payee. This allows the Offset to be traded without limitation in the future.
The Insured Risks are the reasons for invalidation as set out in section 95985(c) of the California Cap & Trade Program Regulations being:
- The Offset Project Data Report contains errors that overstate the amount of GHG reductions or GHG removal of enhancements by more than five per cent;
- The offset project activity and implementation of the offset project was not in accordance with all local, state, or national environmental and health and safety regulations during the Reporting Period for which the ARB Offset Credit was issued; or
- ARB determines that offset credits have been issued in any other voluntary or mandatory program within the same offset project boundary and for the same Reporting Period in which ARB Offset Credits were issued for GHG reductions and GHG removal enhancements.
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