The Well Done Foundation (WDF), a nonprofit organization focused on capping orphaned oil and gas wells across the United States, has introduced the industry’s first insured high-integrity carbon credits, backed by reinsurance from AXA. The offering, launched in partnership with AgriCap Group, LLC, is designed to bring enhanced transparency, reliability, and permanence to the voluntary carbon market.
WDF’s insured carbon credits, created through methane sequestration, undergo a rigorous validation and verification process performed by third-party auditors. The credits are certified by carbon registries and include guarantees for up to 20 years. A news release highlighted that these measures aim to address concerns about the authenticity and effectiveness of carbon credits in combating climate change.
The newly launched “Insured Carbon” program, structured by AgriCap Group, is protected by a parametric insurance model designed by AXA. This system insures the capping of orphaned and abandoned oil and gas wells, including those damaged by seismic activity. The program also guards against potential risks, such as the devaluation or invalidation of the carbon credits.
Curtis Shuck, founder and chairman of WDF, highlighted the program’s dual purpose of addressing climate change while mitigating the environmental hazards posed by abandoned wells.
“This groundbreaking initiative not only ensures transparency and reliability for our carbon credit buyers but also reinforces our commitment to solving two critical challenges: addressing climate change and mitigating the environmental impact of orphaned wells,” Shuck said.
Key features of the program:
The Well Done Foundation aims to set new benchmarks for accountability in carbon markets, the news release said. By combining carbon credit validation with cutting-edge insurance and blockchain technology, the organization seeks to create a more trustworthy market for buyers and investors alike.
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