ClearBlue, a leader in carbon market analysis, and Kita, a trailblazer in carbon credit insurance, have recently unveiled a pioneering partnership.
This collaboration is set to transform the Voluntary Carbon Market (VCM) by improving data accuracy, risk mitigation, and transparency in the handling of carbon credits. ClearBlue brings to the table its advanced technology platform, ClearBlue Vantage, and a deep reservoir of market expertise. In contrast, Kita introduces cutting-edge insurance solutions for carbon credits, enhancing trust in market transactions.
The primary goal of this partnership is to provide VCM stakeholders with more reliable tools and data to manage and value carbon credits effectively. ClearBlue has utilized its extensive experience and technology to review numerous Nature-based project methodologies like Improved Forest Management (IFM) and Afforestation, Reforestation and Revegetation (ARR), assessing risks associated with delivery. These insights are now integrated into Kita’s underwriting processes to enhance its core product, the Carbon Purchase Protection Cover, which offers insurance against delivery risks in carbon credit transactions.
ClearBlue’s Delivery Risk Assessment (DRA) system is designed to alleviate the challenges associated with investing in carbon project development by reducing exposure to potential project failures and discrepancies in credit volumes. This system, underpinned by years of offset development experience and refined through partnerships with various financial institutions, uses a broad range of data to estimate the likelihood and impact of delivery risks.
On the other hand, Kita’s Carbon Purchase Protection Cover (CPPC) is specifically tailored for stakeholders in the carbon credit market, such as buyers, investors, and lenders of forward-purchased carbon credits. Launched in February 2023, CPPC aims to safeguard these stakeholders against losses due to underperformance or delays caused by counterparty risk, natural disasters, or changes in carbon standards or methodologies.
This strategic alliance between ClearBlue and Kita addresses both analytical and risk management needs in the carbon credit market, fostering more informed investment decisions and promoting the integrity and transparency of the VCM. The partnership not only aims to bolster confidence in carbon credit transactions but also supports broader corporate environmental goals by providing robust tools for sustainability.
Michael Berends, CEO at ClearBlue, highlighted the benefits of this partnership, “We are excited to collaborate with Kita to offer a comprehensive set of insights around carbon offsets for businesses committed to environmental stewardship.
“By combining our Voluntary Offset Insight tool as well as decades of expertise in offset project development, due diligence, and analysis on carbon offsets with Kita’s innovative carbon insurance, we aim to provide a holistic approach to sustainability, supporting organizations in their journey towards a low-carbon future.”
Paul Young, CTO and co-founder at Kita, also expressed his enthusiasm, “Modeling the risks of early-stage projects relies on analysing historical activities and their outcomes. It necessitates not only an expert understanding of the development process but also the technology to extract this data from deep within the documentation. Our partnership with ClearBlue has addressed this challenge, aiding Kita in developing insurance to support projects during this critical phase.”
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