CarbonPool, a startup on a mission to be the world’s first insurance company with a carbon credit balance sheet, has closed an €11.2 million funding round co-led by Heartcore Capital and Vorwerk Ventures and included HCS Capital, Revent Ventures and former members of the management board of insurance giant, Allianz, Axel Theis and Christof Mascher.
Founded by former Allianz executives Coenraad Vrolijk, Nandini Wilcke and Frederic Olbert, CarbonPool aims to accelerate investment in carbon credits, which are crucial to achieving net zero, by providing carbon credit insurance with claims payments made in-kind.
Almost half of the world’s top 2,000 companies have plans to hit net zero emissions by 2030, part of an accelerating effort to achieve the Paris Agreement’s goal of global net zero by 2050. Many of these companies, alongside thousands of others, depend on carbon credits to reach their net zero goals.
But after considerable turbulence in carbon credit markets, credit integrity, proper risk underwriting and certainty of outcomes are critical to reassure investors, regulators, and other stakeholders that these promises represent real environmental gains.
“CarbonPool’s in-kind payments make it unique among insurers in not only offering protection to holders of carbon credits in cases of natural disaster or technology breakdown, but also in providing a guarantee that carbon credits live up to their promises, giving purchasers certainty and ensuring that they can meet their net zero goals,” said Coenraad Vrolijk, former regional CEO of Allianz Africa and CarbonPool’s co-founder and chief executive.
“Insurance represents 5-10 percent of revenue of most mature markets, yet it has only just begun to touch carbon trading. This is a space that desperately needs the credibility that established financial controls like insurance can offer,” commented Christian Jepsen, a founding partner at Heartcore. “We are excited to be backing a world-class team of climate scientists, carbon specialists and most uniquely, insurance experts with a combined 60 years of experience in global underwriting. I’m confident they will bring much-needed professionalization to this sector.”
“CarbonPool’s offering gives buyers, developers and investors in carbon dioxide projects the confidence needed to invest at scale and build the carbon removal industry we need,” added Dr. Dominik Steinkühler, Partner at Vorwerk Ventures. “We have been consistently impressed by the expertise and the track record of the CarbonPool founders and we’re excited to back such an ambitious and purpose-driven team. Their innovative in-kind approach extends beyond typical business insurance, safeguarding Earth’s CO2 balance sheet.”
Founded in 2023, CarbonPool’s insurance license application is underway in Switzerland, and the company is already offering assessments and pre-underwriting agreements to clients including corporations, institutional investors, and carbon removal developers. It is also in conversation with government bodies, including the United Nations and the State of California, sharing perspectives on how insurance can solve some of the industry’s key challenges, such as securing the permanence of carbon removals from the atmosphere.
“We are very excited to invest in CarbonPool. As a VC with a deep focus on insurtech, we believe in the power of innovation to address the pressing challenges of our time, and CarbonPool’s commitment to mitigating climate-related risks aligns perfectly with our vision for the future of the insurance industry,” said Alex Horvitz, CEO of HCS Capital.
