The Well Done Foundation (WDF), a nonprofit dedicated to capping orphaned oil and gas wells across the United States, has introduced the industry’s first insured high-integrity carbon credits, in partnership with AgriCap Group, LLC. The carbon credits are reinsured by AXA and aim to bring greater transparency, reliability, and permanence to the voluntary carbon market.
These insured carbon credits are generated through methane sequestration, with each credit undergoing a rigorous validation and verification process conducted by third-party auditors. Certified by carbon registries, the credits come with guarantees for up to 20 years. This initiative is designed to address concerns regarding the authenticity and effectiveness of carbon credits in mitigating climate change.
The newly launched “Insured Carbon” programme, structured by AgriCap Group, is protected by a parametric insurance model developed by AXA. This insurance model covers the capping of orphaned and abandoned oil and gas wells, including those affected by seismic activity, while also safeguarding against risks such as devaluation or invalidation of the carbon credits.
Curtis Shuck, founder and chairman of WDF said, “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.”
Key features of the programme include high-integrity carbon credits insured to meet stringent standards, thorough third-party validation and verification, comprehensive insurance for protection throughout the credit lifespan, and blockchain integration for efficient tracking and transfer.
