US-based Oka, The Carbon Insurance coverage Firm, has raised over $7m in a seed funding spherical led by Aquiline Expertise Progress.
Firstminute, a founder-led local weather know-how fund, additionally participated within the spherical.
Oka hopes to faucet into the voluntary carbon market (VCM), which is anticipated to develop right into a $1 trillion market by 2037.
At the moment, the speciality insurer is concentrated on providing insurance coverage that may exchange carbon credit if they’re misplaced or discovered to be invalid, giving the VCM market safety and confidence.
The seed funding will go in the direction of increasing Oka’s carbon credit score insurance coverage merchandise and tackling the dangers that main US companies face when buying carbon credit.
Firms use carbon credit, that are produced by initiatives akin to planting bushes, to offset their emissions and attain net-zero objectives.
Aquiline Expertise Progress companion and head Max Chee mentioned: “Chris and the workforce at Oka have a compelling imaginative and prescient for maturing the carbon credit score market by its insurance coverage choices. We’re enthusiastic about our partnership and look ahead to seeing the lasting impression Oka can have on the voluntary carbon market.”
Oka, The Carbon Insurance coverage Firm founder and CEO Chris Slater mentioned: “We’re honoured to have the assist of Aquiline in accelerating the expansion of our firm and reaching our imaginative and prescient for making insurance coverage an integral a part of the voluntary carbon credit score market. With their assist, we’re assured that we’ll speed up the expansion of our firm and obtain our mission of insuring the transition to web zero.”
Earlier this month, carbon credit score transaction community Carbonplace secured $45m backing from 9 world banks to attach consumers and sellers of carbon credit.