Kita To Provide ‘Buffer As A Service’ For OxCarbon

Kita To Provide ‘Buffer As A Service’ For OxCarbon - Carbon Herald

Carbon insurance pioneer Kita has announced it will provide ‘Buffer as a Service’ for UK-based carbon standard, OxCarbon.

The buffer is a term, which refers to a central pool of carbon credits comprised of contributions from each individual project developer. The credits in the pool cannot be sold. 

Buffers are created as a means of maintaining the integrity of today’s Voluntary Carbon Market (VCM) and are operated by carbon standards. 

The challenge with these mechanisms, however, lies in assessing the risk for each separate carbon project and calculating the levels of contribution needed from each project developer. 

This is where Kita’s unique ‘Buffer as a Service’ product comes into play, which will reduce the risk for the carbon standard by using active risk management for the buffer with risk assessment for specific projects based on insurance-driven technical underwriting criteria.

Dr Paul Young, CTO and co-founder of Kita, commented on the new partnership with OxCarbon: “Kita is proud to partner with OxCarbon on Buffer as a Service.”

Relevant: Kita Can Pay Insurance Claims In Cash And Replacement Carbon Credits

“The risk management expertise of Kita, driven by technical insurance underwriting, combined with the transparent and scientific best practice approach developed by OxCarbon, will reduce risk and increase integrity in the management of the OxCarbon buffer; acting as a badge of confidence for scaling financial investment into the high-quality carbon projects we need to fight the climate crisis,” Dr Young said.

Kita’s new insurance product will help drive more investment into carbon projects and is part of an MOU signed by the two companies last year, in which they agree to collaborate on exactly that via  scientific and data-driven approaches.

On behalf of OxCarbon, Carbon Accounting Lead Stephen Lezak also recognized the overall benefits for the VCM from ‘subjecting projects to the professional scrutiny and risk-assessment process of companies such as Kita.’ 

“OxCarbon working with Kita can enable smarter buffer contributions while staying compliant with evolving requirements within the VCM and wider regulatory bodies,” Lezak stated.

Read more: Kita Continues Global Expansion With Switzerland And Singapore

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