Carbon insurance provider Kita announced on Oct. 5 it has partnered with carbon removal standard Puro.earth to boost its ability to manage CO2 credit risk for biochar projects.
As part of the collaboration, Kita will offer biochar insurance exclusively to projects that are certified under the Puro Standard. This move aims to add an additional layer of security to biochar CO2 credit transactions.
In 2019, the Puro Standard established the world-first biochar CO2 removal crediting methodology. The Puro Biochar Standard guarantees that projects meet the highest environmental criteria while bringing net-negative emissions. The sequestered CO2 is scientifically measured and independently verified by a third-party organization.
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Kita also launched a proprietary risk framework, developed jointly with GECA Environment, aimed at accurately assessing and controlling the risks linked to biochar carbon credits. GECA Environnement is a private consulting firm that provides consultants in pyrolysis and biochar.
According to a May 2023 BeZero report using data from cdr.fyi, biochar holds a leading position in the ex-post CO2 removal market, accounting for 89% of all retired carbon removal credits. Additionally, it has some of the lowest barriers to scalability among all engineered carbon removal methods.
“Biochar carbon removal is an important climate mitigation solution which needs to reach its full potential fast,” said Arnaud Defrance, VP of Funding Solutions, Puro.earth. “While we certify suppliers with the Puro Standard and issue CO2 Removal Certificates (CORC) to help them scale, we also collaborate with innovative partners like Kita to help the market grow.”
Introducing an insurance product presents a significant opportunity to instill confidence in purchasers and investors, thus expanding the market, which is facing supply limitations, he also said. This move will empower a larger number of buyers to provide advance payments to suppliers, bridging funding gaps, Defrance added.
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