New Insurance Deal Unlocks Billions for U.S. Clean Energy Projects

AVON, Conn. & LONDON – May 01, 2026 – In a move set to accelerate the flow of capital into the U.S. renewable energy sector, specialist insurer New Energy Risk (NER) has secured coveted coverholder status at Lloyd’s of London, a major step that expands its capacity to insure the complex world of clean energy tax credits. The arrangement, sponsored and backed by risk partner OAK Global, provides a powerful new financial backstop designed to de-risk green investments and unlock funding for projects critical to the nation's energy transition.

Effective April 1, 2026, the agreement grants NER direct authority to underwrite and bind tax credit insurance policies on behalf of Lloyd’s syndicates, leveraging the market’s formidable financial strength and global reputation. This development is seen by industry analysts as a vital piece of financial engineering needed to grease the wheels of a market supercharged by recent legislation but hampered by inherent financial risks.

The Green Gold Rush and Its Risks

The U.S. clean energy landscape was fundamentally reshaped by the Inflation Reduction Act (IRA) of 2022. The legislation unleashed hundreds of billions of dollars in tax credits for everything from solar farms and wind turbines to green hydrogen and carbon capture facilities. A key innovation was making these credits “transferable,” allowing developers to sell them for cash to other corporations needing to lower their tax bills. This was designed to create a liquid market and draw a wider array of investors into the sector.

However, this new market, while promising, is fraught with complexity and risk. For buyers of these tax credits, the primary concern is “recapture risk”—the possibility that the IRS could later disallow the credit and demand repayment if the underlying energy project fails to meet specific, often stringent, operational and reporting requirements for years after it is built. This uncertainty has created a bottleneck, making many potential corporate buyers hesitant to participate and complicating the financing process for developers who need cash upfront to build their projects.

Until now, developers and investors have navigated these risks through costly due diligence and complex legal structures. The demand for a more streamlined and secure solution has been immense, creating a significant opportunity for insurance products that can absorb this specific risk.

A New Financial Safety Net

The partnership between NER and OAK Global directly addresses this market need. By providing insurance that covers the potential invalidation or recapture of a tax credit, NER offers a financial safety net that gives both buyers and sellers the confidence to transact. If a credit is challenged by the IRS, the insurance policy is designed to respond, protecting the buyer’s investment and ensuring the developer is not held liable.

This validation from one of the world's oldest and most respected insurance markets is a significant milestone. “Achieving Lloyd’s coverholder status represents an important validation of our underwriting discipline, risk management framework, and expertise in tax credit risk,” said George Schulz, CEO of NER. He noted that the firm's ability to blend technical underwriting with legal and actuarial rigor allows it to provide a scalable solution for the market. “Our ability to combine technical underwriting, legal expertise, actuarial rigor and market insight allows us to provide scalable, high-quality insurance solutions that help investors, developers and lenders manage tax credit risks with confidence.”

For project developers, this insurance can make their tax credits more valuable and easier to sell, improving project economics. For investors, it transforms a complex, risky asset into a much safer, more predictable investment, akin to a high-grade bond.

The Power of Lloyd's and OAK Global's Vision

Securing Lloyd’s coverholder status is more than a simple partnership; it is a delegation of trust and authority. It signifies that NER has passed a rigorous vetting process, proving its expertise and robust risk management controls. This allows the firm to act as a direct underwriter for Lloyd's, a privilege that streamlines the policy issuance process and provides access to the immense, diversified capital pool of the Lloyd’s market. This expanded capacity is crucial for insuring the multi-billion-dollar wave of clean energy projects currently in the pipeline.

OAK Global’s role as the sponsoring underwriter is equally critical. The business is being underwritten through OAK Global's Syndicate 2843 as part of its 'Transition TCX' class, a specialized category focused on risks associated with the energy transition. This sponsorship is a core component of OAK Horizon, a strategic unit the company launched on January 1, 2026, to focus exclusively on the climate and technology ecosystem. This demonstrates a clear, long-term commitment to deploying its capital and expertise to support the financing of low-carbon infrastructure.

“New Energy Risk has built significant expertise in a segment that’s critical to the U.S. energy transition," stated Cathal Carr, Founder and CEO of OAK Global. “We’re pleased to sponsor their coverholder status at Lloyd’s and to work alongside them through OAK Horizon, where tax credit insurance fits naturally with other innovative structures supporting the financing of low-carbon infrastructure.”

Unlocking Capital and Accelerating the Transition

The ultimate impact of this enhanced insurance capacity extends far beyond the insurance industry. By making the tax credit market more secure and efficient, this partnership is poised to have a tangible effect on the pace and scale of the U.S. energy transition. With reduced risk, a much broader pool of capital can comfortably enter the market. Corporations, institutional investors, and other entities previously wary of the complexities of tax equity can now participate more simply by purchasing insured tax credits.

This influx of new capital is expected to lower the cost of financing for renewable energy projects, enabling more projects to become economically viable. It can also accelerate project timelines by simplifying the financial closing process, which has historically been a major source of delays. For a nation racing to meet ambitious climate goals, removing these financial frictions is paramount.

This development exemplifies the maturation of climate finance, where sophisticated financial instruments are becoming essential tools to manage risk and channel private sector capital toward public policy goals. As the energy transition progresses, the interplay between innovative technology, government incentives, and advanced financial risk management, as demonstrated by the NER and OAK Global partnership, will be fundamental to building the green infrastructure of tomorrow.