Carbon insurance company Kita recently announced that it has expanded its operations to Canada, offering its carbon insurance product to Canadian companies participating in the global carbon markets.
The company’s Carbon Purchase Protection Cover is now available to Canadian investors and buyers who are forward-purchasing carbon credits. This insurance product aims to provide confidence and security to investors, allowing for greater investment flows into high-quality carbon projects.
Kita aims to address the issue of pre-purchased carbon credits not being delivered, a risk that has been uninsurable in the past.
With the increasing demand for carbon credits and the limited supply, buyers often pre-purchase these credits, leading to a high risk of underdelivery. Kita’s Carbon Purchase Protection Cover offers a solution by protecting buyers of forward-purchased carbon credits against unforeseen failures.
If the carbon credits fail to deliver the expected results, Kita covers the buyer’s loss. This innovative insurance solution provides an important safeguard for businesses and organizations looking to offset their carbon emissions.
By reducing the risk associated with carbon credit transactions, Kita seeks to attract more upfront capital and accelerate the pace of positive climate impact. As a coverholder at Lloyd’s of London, a leading specialist insurance and reinsurance marketplace, Kita brings extensive expertise and credibility to the Canadian market.
This expansion comes in addition to Kita’s existing permission to insure companies in the United States and the United Kingdom. Kita Earth Limited’s policies are underwritten by underwriters at Lloyd’s, further enhancing the credibility and reliability of their coverage.
With Kita’s entry into the Canadian market, buyers can now have peace of mind knowing that their investment in carbon credits is protected, encouraging the continued growth of sustainable practices and environmental initiatives in the country.