Kita, a carbon insurance specialist and Lloyd’s of London coverholder, has entered into a partnership with ICROA-backed carbon standard, Puro.earth, to offer biochar insurance exclusively to projects certified under the Puro Standard.
According to Kita, this partnership with Puro.earth will increase the firm’s ability to manage carbon credit delivery risk
for high-quality biochar projects.
The aim is to create an insurance ecosystem that offers a vast degree of confidence and quality assurance for scaling biochar solutions.
In 2019, the Puro Standard brought the first ever biochar carbon removal crediting methodology to market and the standard continues to lead on transparency and quality assurance.
It has also been confirmed that Kita’s insurance product, Carbon Purchase Protection Cover, will only be available to Purocertified biochar projects, which ultimately applies an additional layer of due diligence and security to biochar carbon credit transactions.
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At the same time, the carbon insurance specialist is also launching proprietary risk framework, developed with GECA Environnement, to effectively quantify and manage risks associated with biochar carbon credits.
Arnaud Defrance, VP of Funding Solutions, Puro.earth, said: “Biochar carbon removal is an important climate mitigation solution which needs to reach its full potential fast. While we certify suppliers with the Puro Standard and issue CO2 Removal Certificates (CORC) to help them scale, we also collaborate with innovative partners like Kita to help the market grow.
“The creation of an insurance product represents a tremendous opportunity to reassure buyers and financiers to accelerate the growth of a supply constrained market. More buyers will now be able to offer prepayments to suppliers, filling some real funding gaps.”
In addition, the collaboration between Kita and GECA further solidifies Kita’s carbon removal expertise within technological methodologis through the development of a proprietary biochar risk framework.
By working together with GECA, Kita will continue to broaden its underwriting capabilities, enabling the provision of policies that are effective and fit for purpose within this emerging and essential market.
Melissa Leung, Director, Business Development & Carbon, GECA Environnement, commented: “Only a few years after the inception of this nascent market, GECA continues to observe increases in quality of carbon removals provided to buyers in the VCM. Kita, through its delivery risk insurance product for biochar, is providing a powerful de-risking mechanism, needed for buyers to increase their contributions to Net Zero through offtakes and investments.
“GECA is proud to support Kita in its rigorous approach to carbon insurance, including through the understanding of infrastructure, operational and commercial risks. The biochar sector has been waiting for solutions to scale for 20 years, and we believe our collaboratin is one of those solutions.”
Tom Merriman, Chief Product Officer and Co-Founder, Kita, added: “Demand for credits from biochar projects is huge. Our delivery risk insurance product safeguards transactions and – through our partnership with Puro and work with GECA – adds an extra level of security and transparency to this growing market. Insurance acts as a stamp of confidence, enabling corporate buyers to get the green light for their purchases and continue to make significant headway towards removing carbon from the atmosphere as part of their climate strategies.”
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