Kita And Wilder Carbon Announced The First Insurance For Carbon Buffer Pools

Kita And Wilder Carbon Announced The First Insurance For Carbon Buffer Pools - Carbon Herald
Credit: Kita earth

Kita – the carbon insurance specialist and UK-based carbon standard, Wilder Carbon, announced the first ever insurance policy for a buffer pool, with capacity provided by Chaucer – an international specialty insurance and reinsurance group.  

A buffer is a central pool of carbon credits where each project developer is required to individually contribute. In the instance of losses from carbon projects in the Wilder Carbon standard that cause the buffer to deplete, the insurance policy will function as a means to ensure buyers of carbon credits remain whole. 

Relevant: Kita And ICR Partner For Innovative Buffer Risk Management

The insurance protection for the Wilder Carbon buffer aims to increase confidence by protecting against underperformance and the risk of default/withdrawal. It ensures the integrity and permanence of the carbon credits scheme in order to help drive meaningful streams of finance towards high-quality carbon projects. 

“By working in partnership with Carbon Standards, carbon insurance can increase resilience and build trust in the integrity and functionality of buffer pools. We are thrilled to be working with Wilder Carbon on a pioneering insurance offer for their high-quality nature-based carbon credit buffer, and hope this policy helps lead the way for the wider incorporation of insurance into buffers across the Voluntary Carbon Market,” Natalia Dorfman, CEO and co-founder, Kita. 

Wilder Carbon projects are focused on restoring natural ecosystems in a way that more CO2 is sequestered, wildlife is increasing and the projects provide benefits to people and communities such as flood prevention. The Wilder Carbon Standard is the mechanism developed by the company that seeks to achieve the greatest possible degree of additionality and permanence and the lowest possible risk of carbon leakage.

Relevant: Kita Expands Carbon Credit Delivery Risk Insurance To EU And EEA

“Wilder Carbon is proud to be the first Carbon Standard to incorporate “Buffer Insurance” as a safeguard against loss for Wilder Carbon’s Buffer. Partnering with Kita for innovative insurance solutions will complement Wilder Carbon’s already robust risk mitigation, trusted delivery partners and commercial approach to protect carbon credit investments on our validated projects. This will reduce barriers to market entry and secure further investment into the restoration of nature,” Sarah Brownlie, Program Director, Wilder Carbon.

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