Gallagher has partnered with Kita, the specialist carbon insurer and a Lloyd’s of London coverholder, to launch an “industry-first” risk intelligence consulting service for carbon removal projects.
The partnership will reportedly deliver a new class of “holistic” risk intelligence reports, combining carbon risk analysis with business risk assessments of counterparty financials, deal structures, economic viability, and potential liabilities, alongside detailed host-country political risk analysis across the full project lifecycle.
Gallagher explained that the new service, exclusively available from the firm and powered by Kita’s purpose-built carbon removal risk analytics, will offer “rapid, data-driven insights into project and portfolio risk across the carbon removal landscape, providing buyers, sellers and investors with unrivalled insights on risks relating to the likelihood of success.”
“This helps address the fact that the voluntary carbon market is expanding rapidly, but it is largely unregulated, creating significant risks. This new service can be used for general insight and due diligence purposes on projects, providing firms a level of confidence and knowledge not currently available on the market,” Gallagher continued.
With carbon removal projects becoming an increasingly popular choice within net-zero portfolios, large corporations and financial institutions are said to be seeking credible, decision-ready intelligence to support purchasing, investment, and financing decisions.
Gallagher noted that its global client base includes many of the organisations now actively evaluating carbon removal as part of their net-zero, investment, or risk strategies.
James Bosley, Head of Climate Strategy, Carbon Insurance & Parametric Solutions, Gallagher, added, “This is an industry first and a game changer for the voluntary carbon market.
“This service will enable effective due diligence for firms to better understand the projects they are buying from or investing in and for project owners to provide effective proof of concept. This new service will sit independently from our carbon insurance services which we already offer working with clients worldwide.”
Paul Young, CTO and co-founder at Kita, commented, “Gallagher’s brokers and advisory teams worldwide can now provide clients with a fast, data-driven view of project and portfolio risk across the carbon removal industry.
“Leveraging Kita’s advanced risk analytics, developed through real-world project underwriting, Gallagher will package these reports into a broker-led advisory service providing effective due diligence for corporate buyers and proof of concept for sellers.”
