Artio has become the first insurer approved by Lloyd’s to underwrite carbon projects at their earliest stages, aiming to address a key barrier to investment in climate solutions.
Backed by insurers Tokio Marine HCC, Markel and Apollo, Artio said it is now positioned to provide insurance coverage for carbon projects worldwide. This coverage is intended to help facilitate a capital flow into projects that support global net-zero goals.
The carbon market, expected to reach $100 billion annually between 2030 and 2035, faces a challenge in securing early-stage investment. Estimates indicate that $16 billion was invested in 2024, with growth expected in the coming years. However, the lack of appropriate insurance coverage for early-stage investments has made it difficult for projects to secure necessary funding.
Founded by experts with backgrounds at Bloomberg, Deloitte, and Sylvera, Artio said it has developed a proprietary risk model to assess risks associated with carbon projects before they begin. The model allows the insurer to cover risks such as credit under-delivery, arising from financial, climate, political, or methodological factors.
Bilal Hussain, Artio’s co-founder and CEO, explained: “Carbon buyers are ready to back high-quality climate solutions, but uncertainty at the earliest stages continues to hold back critical capital flows. By providing cover before projects even begin, we’re helping create the conditions needed to accelerate the scaling of this market.”
Lloyd’s coverholder status enables Artio to write coverage on behalf of the Lloyd’s market, increasing its ability to support the growth of early-stage carbon investments.
Currently, Artio provides coverage for Afforestation, Reforestation, and Revegetation (ARR) projects, which involve planting trees and restoring land through soil conservation practices. It also covers biochar projects, which transform waste into material that enhances soil while sequestering carbon. The company said it plans to expand its coverage to include direct air capture (DAC) and enhanced rock weathering (ERW) projects by 2025.
While some focus on more mature initiatives, others, including Artio, are addressing the need for coverage in the early stages of carbon projects.
