The paper explores the potential for insurance with respect to avoided deforestation offset projects, as they present a low-cost means for emission reductions. It reviews the recent legislation proposed in Congress (the leading bill at the time was ACES). The paper first suggests changes to the legal language to improve transparency for firms operating in the carbon market; and it then presents a financial analysis, exploring the viability of insurance from the perspectives of both an insurance firm and a project developer. Lastly, the paper discusses how the insurance model might be implemented, including measures to control risk and reduce insurance premiums.