Terra Global Capital Signs Groundbreaking OPIC REDD Insurance Contract
SAN FRANCISCO--(BUSINESS WIRE)-- Terra Global Capital, the leading land-use carbon development and investment company, announces the signature of a groundbreaking agreement with OPIC, the Overseas Private Investment Corporation. The agreement provides Terra Global with political risk insurance covering its investment in an Asian-based reduced emissions from deforestation and degradation (REDD) carbon project. This is the first time that a political risk insurance contract has been written by OPIC for a carbon project and it is believed to be the first REDD insurance contract executed globally.
“The value of having political risk insurance as a mechanism to reduce investor’s risk cannot be overstated in this emerging sector,” said Leslie Durschinger, Founder, and Managing Director of Terra Global Capital. “Expropriation and political violence insurance lowers the risk of investing in REDD host countries, improving the investment profile for private capital investments in the sector.”
In working with OPIC to develop this REDD insurance product, Terra Global continues to demonstrate innovation and deliver on its mission of developing the market for land-use carbon projects that deliver sustainable income streams to rural communities and safeguard biodiversity. Terra Global intends to apply similar risk-insurance contracts across the investments to be made by the Terra Bella Fund, managed by Terra Global Investment Management.
As the U.S. Government’s development finance institution, OPIC supports U.S.-based investment in emerging markets worldwide, fostering development and the growth of free markets. Executing this REDD insurance contract represents a milestone in OPIC’s innovation and commitment to reducing deforestation by working with the U.S. private sector to help support the development of emerging markets, catalyzing investments, jobs and growth opportunities with significant development value.