Kita, a specialist in carbon insurance and a coverholder at Lloyd’s of London, has entered into a strategic partnership with Puro.earth, a carbon standard backed by ICROA (International Carbon Reduction and Offset Alliance).
Kita specialises in providing insurance solutions for carbon-related risks, while Puro.earth is known for its leading role in carbon standards and quality assurance.
The partnership between Kita and Puro.earth is driven by the goal of enhancing confidence and quality assurance in the biochar carbon credit market. This collaboration aims to support high-quality biochar projects by managing carbon credit delivery risk effectively.
Kita is a renowned carbon insurance specialist and coverholder at Lloyd’s of London. They are dedicated to offering insurance solutions for various carbon-related risks, including those associated with carbon credit transactions.
Puro.earth is an ICROA-backed carbon standard that has played a pivotal role in introducing the first-ever biochar carbon removal crediting methodology to the market in 2019. Puro.earth continues to lead in terms of transparency and quality assurance within the carbon industry.
Kita’s insurance product, known as “Carbon Purchase Protection Cover,” will be exclusively available to biochar projects certified by the Puro Standard.
This exclusivity adds an extra layer of due diligence and security to biochar carbon credit transactions, reinforcing the credibility of these transactions in the market.
In addition to the partnership with Puro.earth, Kita is launching a proprietary risk framework in collaboration with GECA Environnement. This framework is designed to quantify and manage risks associated with biochar carbon credits effectively. By developing this risk framework, Kita aims to further solidify its expertise in carbon removal within technological methodologies.
Melissa Leung, Director, Business Development & Carbon, GECA Environnement, commented: “Only a few years after the inception of this nascent market, GECA continues to observe increases in quality of carbon removals provided to buyers in the VCM. Kita, through its delivery risk insurance product for biochar, is providing a powerful de-risking mechanism, needed for buyers to increase their contributions to Net Zero through offtakes and investments.
“GECA is proud to support Kita in its rigorous approach to carbon insurance, including through the understanding of infrastructure, operational and commercial risks. The biochar sector has been waiting for solutions to scale for 20 years, and we believe our collaboration is one of those solutions.”
Tom Merriman, Chief Product Officer and Co-Founder, Kita, added: “Demand for credits from biochar projects is huge. Our delivery risk insurance product safeguards transactions and – through our partnership with Puro and work with GECA – adds an extra level of security and transparency to this growing market. Insurance acts as a stamp of confidence, enabling corporate buyers to get the green light for their purchases and continue to make significant headway towards removing carbon from the atmosphere as part of their climate strategies.”
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