Insurance for the Carbon Market with Artio, Ep #123

There’s been a lot of news in recent years about the risks within carbon markets. Companies buying carbon credits to offset their emissions have struggled with the uncertainty that a carbon project might not reduce as much carbon as they project. A forest could burn or a technology could fail to work properly and the project will underdeliver. Yet, hundreds of billions of dollars are spent on carbon credits, a figure that could grow well into the trillions.&#160;Bilal Hussain is targeting this uncertainty in this market by offering insurance through his company Artio. Fun fact: Bilal actually saw the need for insurance while working at Sylvera – a carbon market sourcing and diligence platform and recent guest on our show – when he realized that investors were asking for collateral that no one had. Artio enters early – before the first tree is planted – to help more carbon reducing projects become viable. If you consider the size of the carbon market and the shortage of ways to insure new projects, the opportunity for Artio is quite significant.Bilal makes this complex space rather simple and easy to understand. We spoke about his background, the need for insurance, the risks different types of projects face, the growth he’s anticipating and much more. If you’ve long wondered about the risks of carbon projects, this conversation will shed some light on the space and one approach to unlocking its potential.&#160;&#160;On today’s episode, we cover:00:58 — Introduction to carbon market risks and Artio’s approach02:40 — Bilal’s background and transition into carbon insurance04:25 — The creation of Artio and addressing insurance needs in carbon markets07:52 — Artio’s impact on financial and climate markets, and market sizing11:13 — Early-stage risk phases and insurance for carbon projects14:05 — Types of projects Artio insures; afforestation, biochar, rock weathering15:25 — Risk assessment by project type and key differences17:14 — Artio’s market positioning, product traction, and offering insurability assessments to developers20:41 — How Artio’s workshops educate insurers and demonstrate risk modeling22:46 — Case study: How coverage and claims/settlements work in practice27:25 — Market challenges: Standing out in a crowded space, growth ambitions, and automation29:10 — Key surprises about the carbon market and importance of policy31:47 — The role of data transparency and risk assessment in broader climate domains34:59 — Other insurance use cases for managing climate transition risk38:10 — Artio’s roadmap: expanding coverage, supporting developers, and scaling upResources MentionedArtioSylveraMaya ClimateAsia Climate SummitSF Climate WeekCORSIA InsuranceConnect with usBilal Hussain<a...