Alliant Insurance Services Develops New Program for Investors in Carbon Credit Projects.

Program Protects Investors Against Political and Regulatory Uncertainties That Pose Threats to Greenhouse Gas Reduction Projects in Developing Countries

NEWPORT BEACH, Calif. -- Alliant Insurance Services, one of the nation's largest specialty insurance brokerage firms, has developed an insurance program to mitigate political and counterparty default risk in carbon credit projects, an area of concern to many investors in the burgeoning area of carbon credits, the company announced. The program is offered through Alliant Emerging Markets, a group that specializes in helping clients reduce political and economic threats to business.

Under the Kyoto protocol, an international treaty created to reduce greenhouse gas (GHG) emissions linked to global warming, carbon credit projects provide tradable credits to parties participating in the development or operation of GHG-reduction projects. Typical projects include small-scale hydroelectric dams and facilities that capture methane gas from landfills or reduce chemical emissions from industrial operations. The market for carbon credits is estimated to be $30 billion and could grow to $1 trillion within a decade, by some estimates.

Alliant's new program covers key political and credit risks that could derail a project and prevent the expected credits from being generated, according to John Minor, executive vice president and director of Alliant Emerging Markets.

Minor said Alliant Emerging Markets has been working with underwriters for over a year to develop specialized coverage to meet the unique needs of investors in carbon credit projects. Earlier this year, it placed a program for a U.S.-based company that is a major investor in carbon credit projects around the world. The program is believed to be the first of its kind in the insurance industry, Minor said. A confidentiality agreement prevents disclosure of the investor, country and details of the project.

"Our group's experience and understanding of the often volatile political issues that affect business transactions in emerging markets--combined with the specific expertise we have developed to protect carbon credit project investors--gives these clients a unique advantage in the fast-growing and highly lucrative carbon credit market," Minor commented.

Minor added that during the past year, Alliant Emerging Markets has developed close working relationships with a number of insurance carriers who are committed to providing the unique coverage carbon credit investors require.

According to Minor, Alliant's program for carbon credit projects can address the following investor risks:

* Actions or inaction by the host government that prevent the project company from completing the project and/or the investor from receiving the benefits of the carbon credits

* Breach of contract by the project company, including failure to make payments due under the project agreement(s) following termination of the project

* Foreign exchange restrictions that prevent the investor from converting and/or repatriating dividends due under a shareholder agreement

* Political violence, including civil unrest, terrorism or war, that prevents or delays construction or operation of the project

Minor said the carbon credit insurance coverage now offered by Alliant "will help facilitate the financing of projects that aim to reduce greenhouse gases around the world by providing the added assurance many investors require in the face of political, financial and regulatory uncertainties."

About Alliant Insurance Services

Headquartered in Newport Beach, Calif., Alliant Insurance Services, Inc. is one of the largest insurance brokerage firms in the United States and has a history dating back to 1925. Alliant Insurance provides property and casualty, workers' compensation, employee benefits, surety, and financial products and services to more than 20,000 specialized clients nationwide, including public entities, tribal nations, healthcare, energy, law firms, real estate, construction, and other industry groups. More information is available on the company's web site at: www.alliantinsurance.com.

Release Summary:

Alliant Insurance Services, one of the nation's largest specialty insurance brokerage firms, has developed an insurance program to mitigate political and counterparty default risk in carbon credit projects, an area of concern to many investors in the burgeoning area of carbon credits, the company announced. The program is offered through Alliant Emerging Markets, a group that specializes in helping clients reduce political and economic threats to business.

KEYWORDS: alliant insurance, carbon credit, carbon credit trading, default, emerging markets, financial, global warming and greenhouse gas, greenhouse gas, greenhouse gas and global warming, greenhouse gas emissions, political, regulatory