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illuminem summarizes for you the essential news of the day. Read the full piece on Reuters or enjoy below:
🗞️ Driving the news: CarbonPool, a startup founded by former Allianz executives, has raised 10.5 million Swiss francs ($12.17 million) to launch an insurance service that ensures companies buying carbon credits receive the permits they paid for, even in cases of issuer failure
🔭 The context: This funding round, led by Heartcore Capital and Vorwerk Ventures among others, is Europe's largest climate-focused seed funding since the start of 2023
• CarbonPool aims to address the market's uncertainty by offering insurance that compensates with carbon credits instead of monetary reimbursement
🌍 Why it matters for the planet: By guaranteeing the delivery of carbon credits, CarbonPool seeks to bolster the reliability of carbon offset markets, crucial for companies aiming to meet their emission reduction pledges
⏭️ What's next: Awaiting Swiss regulatory approval, CarbonPool's innovative approach could transform how carbon credits are traded and insured, potentially accelerating corporate climate action by providing more security in meeting emissions targets
💬 One quote: "Insurance is basically the missing piece," said Nandini Wilcke, co-founder and Chief Operating Officer of CarbonPool, highlighting the gap their service aims to fill in the carbon credit market
📈 One stat: 45% - the average success rate for issuing carbon permits between 2000 and 2023, demonstrating the challenge CarbonPool intends to address
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