This paper discusses the world’s first-ever political risk insurance policy for a forest carbon offset project, provided by the U.S. Government’s development finance agency, the Overseas Private Investment Corporation (OPIC). This project aims to protect 64,318 hectares of forests in Oddar Meanchey Province, in Northwest Cambodia. The paper presents the concept of OPIC's political risk insurance and describes the agency’s past and current developmental and environmental financing practices.