# Can Insurance Successfully Address Reversal Risk in Carbon Markets?

Published by Perspectives Climate Group. Canonical page: https://perspectives.cc/work/publications/can-insurance-successfully-addressreversal-risk-in-carbon-markets

This paper examines whether insurance can credibly address the shortcomings of existing reversal mechanisms. Drawing on lessons from property insurance against wildfire risk and the World Bank Group's CDM-era products, it identifies the key design features and limitations that will determine whether insurance can meaningfully contribute to managing reversal risk. The paper also reflects insights from the CMM-WG workshop held on 12 March 2026, which convened insurers, programme experts, and policymakers to debate the path forward.

## Details

- Authors: Axel Michaelowa, Aayushi Singh
- Year: 2026
- Type: Discussion paper
- Published by: Perspectives Climate Research
- Topics: Carbon Markets
- PDF: https://perspectives.cc/wp-content/uploads/2026/04/CMM-WG-III_insurance_discussion-paper_15.04.2026.pdf

Cite this page as: Axel Michaelowa, Aayushi Singh (2026). Can Insurance Successfully Address Reversal Risk in Carbon Markets?. Perspectives Climate Research. Available at: https://perspectives.cc/work/publications/can-insurance-successfully-addressreversal-risk-in-carbon-markets