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.

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.

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.”