CarbonPool provides in-kind insurance that compensates clients with carbon credits instead of cash for unexpected shortfalls or reversals in carbon removal projects. This specialized insurance mitigates delivery and permanence risks for buyers, developers, and investors in the carbon market. The service is designed to increase confidence, enabling scaled investment in net-zero transition assets.
Funding
$12.3M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
Founders
Product
Problem
Carbon removal projects face risks of carbon credit shortfalls and reversals due to natural disasters, operational failures, and lower-than-expected yields, undermining confidence in carbon removal investments. Traditional insurance solutions often compensate with cash, which may not guarantee the replacement of lost carbon credits with credits of comparable quality and origin.
Solution
CarbonPool provides in-kind insurance that compensates for unexpected carbon credit shortfalls and reversals with high-quality carbon credits, ensuring commitments to net zero are upheld. The company utilizes bespoke risk models developed by climate scientists, insurance leaders, and experienced risk modelers to assess investment risks and deliver mitigation products. CarbonPool's insurance products cover carbon credit shortfalls caused by natural catastrophes, weather effects, and accidents, as well as reversals where sequestered carbon leaks back into the atmosphere. They also offer protection against unintended emissions from temporary disruptions in carbon capture technologies or machinery breakdowns.
Target Audience
CarbonPool's primary clients include developers, corporate buyers, and investors in carbon removal projects who require certainty that carbon credits will be delivered and remain sequestered.
Features
- Bespoke risk models tailored to specific carbon removal projects
- In-kind compensation with high-quality carbon credits
- Coverage for carbon credit shortfalls due to natural disasters, fires, disease, and accidents
- Insurance against carbon reversals, ensuring long-term emissions reduction integrity
- Protection against unintended emissions from carbon capture technology disruptions