The Price of Permanence

​Guaranteeing and pricing durability for carbon management techniques is one of the most important questions facing the ecosystem today. Novel approaches to durability are emerging, including permanence trusts and contracted durability, and both these approaches rest on being able to fairly assess reversal risks across portfolios of approaches whilst also forecasting their future costs.

​Carbon at Risk framework - an academic, open-source methodology for pricing non-permanence risk - and how it can be used to provide warranties for individual projects. It will be an interactive session, with participants brainstorming warranty designs and hearing perspectives from other stakeholders across the market.

​Objectives

• ​Introduce participant to the risk modelling CaR is conducting to underpin permanence trusts

• ​Strengthen our understanding of market and stakeholder attitudes about permanence trusts by:

  • ​Hearing priorities and concerns of participants when considering permanence trust design

  • ​Having small groups design warranty structures and explore how that effects pricing and pricing structures

​Pre-session requests

• ​Explore the warranty pricing permanence trust online tool to get familiar with the model parameters and assumptions