London | November 4, 2024
Marsh, the world’s leading insurance broker and risk advisor and a business of Marsh McLennan (NYSE: MMC), and We2Sure, a specialist in insurance and risk management solutions for carbon credit certificates, today announced the launch of a new insurance facility to help organisations in the UK, EU, and US manage the rapidly rising risks associated with carbon credit certificate fraud.
While carbon credits can be used by businesses to offset their carbon dioxide emissions, the carbon credit industry is being increasingly targeted by fraudsters, who are selling counterfeit carbon credit certificates, or certificates for projects which do not exist.
Marsh’s new facility will enable businesses to insure against the risk of purchasing counterfeit certificates, the sale of certificates for non-existent projects, and theft. Backed by insurers Sompo, Brit and Talbot, the facility also enables businesses to access We2Sure’s technology to assess the validity of certificates before they purchase them. We2Sure’s CarbonActuator can identify duplicate and counterfeit certificates, while its satellite and AI technology, which monitors and assesses projects in real-time, identifies projects that do not meet a pre-determined standard and do not reflect the certificates issued.
Commenting on the launch, Rupert Poland, UK Digital Asset Leader, Marsh, said: “Businesses are increasingly using carbon credits as a core element of their strategy to meet net zero targets, and this leaves them exposed to fraudsters seeking to take advantage of this growing market. The lack of standardization and transparency in the market makes it difficult for businesses to assess the legitimacy of the carbon credits they are buying. This new facility will not only help de-risk investments for businesses from a financial and reputational perspective, but also support the integrity and expansion of the wider carbon credit ecosystem.”
Simon Wigzell, Head of Business Development and Underwriting at We2Sure, added: "Our data-backed verification process addresses the critical issue of authenticity in carbon credit certificates, substantially reducing reputational risks for buyers. This transformative solution establishes a robust integrity standard, effectively converting intangible carbon credits into tangible assets, thereby enabling corporations to invest with greater confidence."
