Kita Expands Carbon Credit Delivery Risk Insurance To EU And EEA

Kita Expands Carbon Credit Delivery Risk Insurance To EU And EEA - Carbon Herald

Kita, a specialist insurance provider backed by Lloyd’s of London, announced that they can now insure carbon credit deals for companies in the European Union (EU) and European Economic Area (EEA). 

This adds to their existing coverage for buyers and investors already established in the UK, USA, Canada, Singapore, and Switzerland. 

To reach this key market, Kita has joined forces with Pro MGA Solutions Europe GmbH.

This expansion marks a significant step forward for Kita’s growth trajectory. Their core product, Carbon Purchase Protection Cover (CPPC), safeguards buyers of high-quality carbon credits from the very beginning (pre-validation stage) in case of future under-delivery.

Relevant: Kita And ClearBlue Partner To Radically Change Insurance For The Voluntary Carbon Market

If credits fall short, Kita steps in to cover the loss.

The CPPC offering tackles several challenges hindering the growth of the carbon market (and consequently, the development of crucial carbon solutions). 

By minimizing risks associated with future carbon credit purchases, CPPC helps channel significant investments towards carbon projects at a crucial early stage, allowing them to accelerate their impact.

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A recent report co-authored by Kita and Oxbow Partners, a specialist consulting firm, estimates that the market for carbon credit insurance could reach a staggering $1 billion in annual premiums by 2030, potentially rising to $10-30 billion by 2050. 

Recognizing this potential for future demand, Kita plans to expand its reach to more countries. This will allow market participants from various regions to secure their high-quality carbon credit transactions with specialized insurance solutions.

This announcement builds upon Kita’s recent achievements, including their growing expertise in insuring diverse carbon removal technologies, their innovative “Buffer as a Service” offering in new markets, and their groundbreaking option to settle claims with replacement carbon credits.

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