Invested In Climate 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.
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.
On today’s episode, we cover:
- 00:58 — Introduction to carbon market risks and Artio’s approach
- 02:40 — Bilal’s background and transition into carbon insurance
- 04:25 — The creation of Artio and addressing insurance needs in carbon markets
- 07:52 — Artio’s impact on financial and climate markets, and market sizing
- 11:13 — Early-stage risk phases and insurance for carbon projects
- 14:05 — Types of projects Artio insures; afforestation, biochar, rock weathering
- 15:25 — Risk assessment by project type and key differences
- 17:14 — Artio’s market positioning, product traction, and offering insurability assessments to developers
- 20:41 — How Artio’s workshops educate insurers and demonstrate risk modeling
- 22:46 — Case study: How coverage and claims/settlements work in practice
- 27:25 — Market challenges: Standing out in a crowded space, growth ambitions, and automation
- 29:10 — Key surprises about the carbon market and importance of policy
- 31:47 — The role of data transparency and risk assessment in broader climate domains
- 34:59 — Other insurance use cases for managing climate transition risk
- 38:10 — Artio’s roadmap: expanding coverage, supporting developers, and scaling up
Resources Mentioned
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