Addressing Climate Change Mitigation and Adaptation through Insurance for Overseas Investments

This report examines how the U.S. Overseas Private Investment Corporation (OPIC) integrates climate change mitigation and adaptation into its mission of facilitating U.S. private investment in developing countries. It details OPIC's transition from general environmental guidelines to a specific 2010 Environmental and Social Policy Statement, which establishes greenhouse gas (GHG) emission caps, energy efficiency requirements for intensive sectors, and reporting mandates for high-emitting projects.

• OPIC has established a target to reduce direct greenhouse gas (GHG) emissions within its active portfolio by 30 per cent over a 10-year period and 50 per cent over a 15-year period, using a baseline from June 30, 2008.
• The 2010 Environmental and Social Policy Statement mandates that any project with direct GHG emissions exceeding 25,000 metric tonnes of CO2 equivalents per year is subject to an annual emissions cap.
• OPIC utilizes a project categorization system (A, B, C, and D) to manage environmental and social risks. Projects emitting more than 100,000 short tons (91,000 metric tonnes) of CO2 equivalents annually are automatically classified as Category A, requiring full environmental and social impact assessments.
• OPIC incorporates the International Finance Corporation's (IFC) Performance Standard 3, requiring project proponents to implement cost-effective measures to improve the efficiency of energy, water, and material consumption.
• While OPIC promotes low-carbon technologies and carbon sequestration—evidenced by a 2011 political risk insurance contract for a forest protection project in Cambodia—it does not categorically exclude high-emissions projects like coal-fired power plants, though it prefers those that capture 85 per cent of emissions.

APA

Johnson, L. (2012). Addressing Climate Change Mitigation and Adaptation through Insurance for Overseas Investments. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/opic_agriculture_mitigation.pdf

Chicago

Johnson, Lise. Addressing Climate Change Mitigation and Adaptation through Insurance for Overseas Investments. International Institute for Sustainable Development, 2012. https://www.iisd.org/system/files/publications/opic_agriculture_mitigation.pdf.

Wikipedia

{{cite report |last1=Johnson |first1=Lise |title=Addressing Climate Change Mitigation and Adaptation through Insurance for Overseas Investments |publisher=International Institute for Sustainable Development |date=May 2012 |url=https://www.iisd.org/system/files/publications/opic_agriculture_mitigation.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{johnson2012addressing, author = {Johnson, Lise}, title = {{Addressing Climate Change Mitigation and Adaptation through Insurance for Overseas Investments}}, institution = {International Institute for Sustainable Development}, year = {2012}, month = may, url = {https://www.iisd.org/system/files/publications/opic_agriculture_mitigation.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }