In a move aimed at reshaping confidence in voluntary carbon markets, carbon insurance startup Oka has partnered with Bolsa Argentina de Carbono (BACX) to launch exchange-traded carbon credits with embedded invalidation insurance.
The deal, brokered by Lockton, applies to afforestation and reforestation credits listed on the BACX platform, and is the first of its kind in the world, according to Oka.
The initiative is expected to set a new benchmark for transparency and risk mitigation in carbon trading—a market frequently criticized for inconsistent quality standards and lack of buyer protections.
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Oka’s insurance coverage will be automatically embedded into the carbon credits listed on BACX, ensuring that buyers are protected in the event of credit invalidation due to verification errors or fraud.
Market participants have long called for mechanisms to de-risk carbon transactions, particularly as corporate demand grows for credible emissions offsets.
Chris Slater, founder and chief executive of Oka, said the partnership with BACX represents a major milestone toward making embedded insurance a standard feature in the carbon markets.
For BACX, the integration of insurance aims to bolster trust and attract institutional capital to a still-maturing carbon economy.
The group’s president, Alejandro Guerrero, called the deal “a new precedent for buyer confidence and transparency.”
Lockton, which advised on the arrangement, sees the partnership as “a major step in connecting corporate capital to carbon markets with maximum efficiency.”
