Kita Unveils New Enhanced Rock Weathering (ERW) Insurance Product

Kita Unveils New Enhanced Rock Weathering (ERW) Insurance Product - Carbon Herald
Source: PRAIRAT FHUNTA from Pixabay

Carbon insurance pioneer Kita is proud to announce its new insurance product, designed for carbon credits generated through Enhanced Rock Weathering (ERW). 

ERW speeds up the natural ability of certain minerals to remove carbon dioxide from the atmosphere and permanently store it away.

One major obstacle for both ERW project developers and those interested in buying or investing in these projects is the lack of robust risk management options (a similar issue exists across the voluntary carbon market). 

This means there’s limited protection if a deal falls through. This uncertainty discourages investment and large-scale financial support, potentially stalling progress. 

Kita‘s insurance tackles this problem by offering essential risk mitigation tools, aiming to unlock broader financing opportunities.

Kita’s coverage protects buyers and investors in ERW projects from the risk of receiving fewer or no carbon credits than expected. 

This helps them feel confident in their ability to achieve their sustainability goals. To ensure they can effectively assess ERW projects, Kita collaborated with experts from Arizona State University’s Centre of Negative Carbon Emissions.

Relevant: Kita To Provide ‘Buffer As A Service’ For OxCarbon

The substantial demand for ERW is evident in The Frontier Fund’s late-2023 purchase of $57 million worth of carbon credits from Lithos Carbon, a leading ERW company. 

While extensive research has confirmed ERW’s effectiveness in large-scale field trials, some inherent risk remains, as with any new technology.

Tom Merriman, Chief Product Officer and Co-Founder of Kita, said: “ERW needs to be a key part of the carbon removal solutions scaling over the coming years.”

“Our delivery risk insurance product will safeguard transactions and add an extra level of security to this growing market.  Particularly as we see more structured finance transactions enabling financing of ERW projects, our insurance is an enabler for project developers to access more efficient flows of capital.”

Read more: Lithos Carbon Announces 3,000 Ton Carbon Removal Purchase

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