Carbon credit-linked insurance provides financial protection against weather-driven yield loss that may impact the validity and value of carbon credits, reduce farmer dropouts and reinforce the credibility of issued credits. Automatic payouts ensure faster liquidity for farmers and keep programs running smoothly.
How it works
Farmers enrolls into carbon credit project
Project developer signs up farmers to participate in a carbon credit project with built-in insurance
Farm data gets registered
Project developer registered the farms into discovermarket platform send farm data via API.
Weather is tracked in real-time
At season’s end, rainfall data is automatically verified and claims are triggered to notify the insurer.
Payout triggered automatically
Project developers receives payouts quickly and distributes to the farmers.
What it covers
Coverage varies based on product and insurer and, customized to crop type and region, but typically includes:
-
Crop damage compensation
Provides financial support when yields are lost or harvests are delayed due to adverse weather conditions
-
Reversal risk coverage
Protects carbon credits becoming invalid due to project failures or external disruptions including wildfire, illegal logging, and more
-
Regulatory and Compliance Risk Coverage
Provides financial support when yields are lost or harvests are delayed due to adverse weather conditions
-
Corresponding Adjustment Compliance Coverage
Protects the value and eligibility of carbon credits under Article 6 of the Paris Agreement, including host country non-compliance and revocation of official authorizations
Why it works
Minimizes income volatility and lower dropout risks from carbon projects
Encourage adoption of regenerative agriculture and agroforestry models
Provides quick recovery after climate stress through automated payouts
Reduces carbon credit project volatility caused by weather-driven events
Guarantees carbon credit value, reinforcing stakeholder trust
Ensures carbon credits is compliant with Article 6 of the Paris Agreement
Results you can expect
Stable farmer participation helps meet expected carbon yield targets
Automatic payouts eliminate delays, assessments and paperwork
Helps companies maintain credibility in their sustainability commitments by securing offset investments
Built for your industry
Agriculture & Carbon Market
Support sustainable farming with climate-resilient financial protection for all stakeholders
