Artio Secures £550,000 for Climate Insurance Innovations
In a significant development for the climate tech landscape, London-based climate insurtech startup, Artio, has successfully raised £550,000 in funding to innovate insurance solutions specifically tailored for early-stage carbon removal projects. This funding marks a crucial step for Artio as it aims to establish a robust risk modeling platform that will enable these projects to attract much-needed investment. With organizations around the globe racing to meet net-zero targets and rectify historical emissions, there is an urgent demand for scalable, high-integrity carbon removal initiatives. However, initial-stage projects often encounter challenges in securing funding due to apprehensions around delivery risks and uncertainties.
Artio seeks to bridge this gap by offering insurance products designed to provide investors with the confidence needed to back these nascent carbon removal projects.
By mitigating risks from the outset, Artio's solutions aim to boost the supply of high-quality carbon credits, which are crucial for corporations and governments striving to achieve their climate commitments by 2030. Bilal Hussain, the CEO of Artio, expressed his conviction regarding the need for improved risk datasets, stating, “I’ve directly seen carbon project investments fall through due to the risk of under-delivery. We need datasets built for early-stage risk modelling, and that’s what we are building to power our insurance products.” This emphasis on developing a reliable framework for risk assessment underlines Artio's commitment to fostering a sustainable carbon credit market.
The recent funding round, led by Lifetime Ventures, a firm known for its extensive expertise in the climate tech domain, along with contributions from SFC Capital, one of the UK's most proactive pre-seed investors, will accelerate Artio's product development and essential hiring processes. The company plans to roll out its initial insurance offerings for carbon removal projects in early 2025, collaborating with seasoned insurance partners as part of Lloyd’s Lab. Koshu Kunii, General Partner at Lifetime Ventures, emphasized the necessity of risk transfers to mobilize substantial capital towards climate solutions, underscoring that Artio's innovative approach to insuring carbon credits promotes transparency within the carbon financial market. This initiative is positioned to pave the way for a more effective transition towards global decarbonization goals.
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