Investments

Investing in We2Sure—insurance for the carbon credit market

Investments

Investing in We2Sure—insurance for the carbon credit market

Words Founders Factory

December 4th 2023 / 3 min read

We’re excited to announce our latest fintech accelerator investment in partnership with Aviva—We2Sure. 

The problem

The global carbon credit market is experiencing a rapid growth trajectory, with an estimated worth of $1.16 trillion projected for 2023. As commitments to achieving net zero emissions gain momentum, industry experts predict that this figure could reach a staggering value in the multi-trillion dollar range by 2030.

But investments in nature-based solutions, a key component of the market, are not meeting the necessary growth. The report calls for a doubling of investments from the current $230 billion to $460 billion by 2025 in order to effectively combat the climate crisis.

One of the major obstacles hindering the growth of the carbon credit market is the prevalence of risks, lack of transparency, and inaccurate measurement methods. These issues must be addressed in order for the market to truly thrive and achieve its potential.

It has become increasingly apparent that there is a significant lack of reliable mechanisms for buyers to validate carbon credits, trace their origins, and ensure that the forests from which they originate are indeed capable of producing the promised emission reductions. Furthermore, the process for accurately measuring and monitoring the issuance of carbon certificates is limited, leaving them vulnerable to various risks such as fraud, duplication, and re-issuance.

Nature-based solutions, although effective, come with the risk of credit production failure due to natural disasters such as wildfires, storms, or changes in land usage. This potential underperformance can detract from the overall value and credibility of these projects.

This creates huge demand for insurance and regular monitoring of these risks, but no comprehensive, end-to-end solution exists. Insurers struggle to offer affordable and suitable products that adequately address the current and future risks faced by existing carbon storage solutions and natural carbon sinks.

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The solution

We2Sure has developed a revolutionary approach to carbon credit protection with end-to-end parametric insurance policies. 

Its proprietary MRV+ asset management platform accesses multiple satellite imagery and is continuously fed with near real-time data, guaranteeing that all stakeholders, including buyers, sellers, investors, and risk carriers, have access to their exposures, specifically to the underlying NBS projects responsible for generating those credits.

We2Sure’s innovative platform allows for active risk management, providing timely risk transfer and aligning coverage with each stakeholder's unique risk appetite, delivering on a more secure and transparent carbon credit market.

We2Sure offers the first insurance product to protect against fake, fraudulent, duplicated or stolen certificates, covering the reputational, governance, as well as financial risks for corporations buying these credits on the voluntary market, aligning with the latest EU certification framework.

The team

Manuela Mangiagalli (CEO & Co-Founder)

Manuela draws on years of experience in investment banking, as well as having spearheaded a number of successful turnarounds and startups. Before We2Sure she was COO at UnipolRe, a reinsurance coverage business. 

Simon Wigzell (Head of Business Development & Co-Founder)

Simon brings over 15 years in the insurance industry. He draws on vast experience of raising and deploying capital in the Lloyd’s of London insurance market. He was Chief Underwriting Officer at UnipolRe, where he and Manuela met. 

Why we’re excited to invest

Olly Betts, sector director for fintech, says: “Carbon capture is an essential component of our survival, but there is not enough investment due to the risk of projects being unverified and the value of carbon credit certificates less than guaranteed. We2Sure uses its proprietary investigation and monitoring platform to understand the risk of carbon capture projects and assets enable them to provide market leading insurance products to give investors confidence in the carbon credits they purchase. I’m excited to welcome We2Sure team to the Founders Factory Fintech Accelerator and work with them to facilitate the decarbonisation of our planet by building trust in the carbon credit market.”

Why We2sure is joining the programme

Manuela Mangiagalli, CEO & co-founder says: “We are delighted to announce our partnership with the Founders Factory Fintech Accelerator. This new collaboration will give us the opportunity to access a vast network of global investors, corporations, and stakeholders who are passionate about creating a greener planet.

We understand the immense risks associated with implementing eco-friendly solutions. This is why we are dedicated to providing a groundbreaking solution that not only benefits the planet, but also offers an exceptional business opportunity.

Joining forces with the Founders Factory Fintech Accelerator will accelerate our progress in making sustainable practices more accessible and bring about much needed institutional underpinning to the carbon market. We are excited to embark on this journey and look forward to making a positive impact on the environment while also driving successful financial outcomes.”

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