Carbon insurance specialist Kita has introduced a new product designed to de-risk investments in Soil Organic Carbon (SOC) projects, extending its flagship Non-Delivery Insurance to a growing class of nature-based carbon removal initiatives.
The coverage will offer developers, investors, and buyers of SOC credits protection against the risk of under-delivery, a challenge that has long slowed capital flow into regenerative agriculture and grassland carbon projects. By reducing these risks, the insurance aims to encourage early-stage investment and unlock new financing pathways for projects that store carbon in soils.
According to the Intergovernmental Panel on Climate Change (IPCC), improved land management practices could sequester up to 2.6 billion tons of CO2 per year globally through SOC enhancement – equivalent to more than India’s annual emissions.
De-Risking Soil Carbon Markets
SOC is the world’s largest terrestrial carbon pool, and even marginal increases in soil carbon can deliver substantial climate benefits.
Beyond carbon removal, projects in this space can enhance water retention, strengthen food security, improve soil health, and support rural livelihoods, making them a valuable tool for climate and development goals.
Despite their promise, SOC initiatives face risks linked to measurement uncertainty, climate variability, and operational challenges, all of which have historically undermined investor confidence. Kita’s Non-Delivery Insurance is designed to address these issues by covering certain defined risks that could prevent projects from delivering expected credits.
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“Nature-based solutions like SOC are essential to achieving net-zero, but they need financial infrastructure to scale,” said Tom Merriman, Chief Underwriting Officer and Co-Founder at Kita. “Our insurance is designed to provide the protection that the market needs to support these projects.”
By tailoring underwriting models to the unique dynamics of soil carbon projects, Kita’s insurance is expected to help build trust in high-integrity SOC credits within the voluntary carbon market.
The company’s move reflects a broader commitment to developing financial tools that can unlock investment in scalable carbon removal pathways.
With the right safeguards in place, SOC projects could play a central role in meeting Paris Agreement targets, offering a cost-effective and nature-positive solution to climate change.
Read more: Oka Launches Green Credit Insurance To Boost Climate Financing
