Kita, a carbon insurance specialist and Lloyd’s of London coverholder, has announced it will now offer carbon credit delivery risk insurance to EU & EEA insureds, complementing existing coverage for buyers and investors in the UK, USA, Canada, Singapore, and Switzerland.
To access this key market, Kita has partnered with Pro MGA Solutions Europe GmbH.
Kita’s main product, Carbon Purchase Protection Cover (CPPC), protects buyers of high-quality carbon credits from the pre-validation stage against the risk of future under-delivery. If the carbon credits fall short, Kita covers the loss.
This product addresses several challenges that hinder the growth of carbon markets, and by extension, the expansion of carbon solutions these markets depend on. By minimising the risk in forward-purchased carbon credit transactions, CPPC encourages significant investment in carbon projects at their crucial early stages, helping them to grow their impact more quickly.
A recent report co-authored by Kita and the specialist management consultancy Oxbow Partners estimates the total market for carbon credit insurance could reach about $1 billion in annual Gross Written Premium (GWP) by 2030, and grow to $10-30 billion GWP by 2050.
In anticipation of rising demand, Kita plans to expand its presence in additional countries, offering specialised carbon insurance products to market participants across various regions to protect their high-quality carbon credit transactions.
