AXA has provided custom parametric insurance solutions to support the insurance of the nonprofit Well Done Foundation’s (WDF) high-integrity carbon credits created by methane sequestration.
This offering, described as the first in the industry, guarantees the authenticity and reliability of carbon credits with its “Insured Carbon” program.
It aims to provide buyers and investors in the voluntary carbon market confidence to complete their purchases.
Through its capping of orphaned and/or abandoned oil and gas wells, the WDF produces high-integrity carbon credits that undergo rigorous validation and verification audits by competent third-party auditors and carbon registry certification.
This process aims to ensure integrity and permanence, from creation through retirement, up to 20-years, the organisation explains.
“We are proud to be the first orphaned well nonprofit and offer these innovative insured, high-integrity carbon credits backed by reinsurance support from AgriCap Group that deliver a truly market-based orphan well solution,” said Curtis Shuck, Founder and Chairman of WDF.
He continued: “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.
“By partnering with AgriCap Group, we are setting a new standard for accountability and innovation in the carbon markets while advancing sustainable solutions for a better future.”
The “Insured Carbon” program, designed by AgriCap Group and backed by AXA’s parametric insurance program, safeguards carbon credit projects focused on capping orphaned/abandoned oil and gas wells and plugging earthquake-damaged ones.
This program guarantees the authenticity and long-term value of the carbon credits by ensuring they are genuinely additional, permanent, and exclusive, WDF highlights.
Furthermore, it protects against any potential devaluation, degradation, deterioration, or invalidation for the life of verified carbon credits.
Additionally, WDF offers insured high-integrity carbon credits to interested parties, with full transparency of documentation tracked and recorded through a customized carbon credit IT administration system and blockchain integration.
Now available for purchase, WDF methane sequestered carbon credits undergo a rigorous third-party validation and verification process, ensuring they meet the highest standards of authenticity, permanence, and exclusivity.
To further enhance trust and reliability, the “Insured Carbon” program provides comprehensive insurance coverage against potential risks like devaluation or invalidation, and these credits are also reinsured.
Finally, each verified credit is verified as a digital asset on a blockchain, enabling secure, transparent, and efficient transfer of ownership.
