Kita insures Marex’s investment in mangrove carbon credit project
Carbon insurance specialist Kita recently expanded its Carbon Purchase Protection Cover to mangrove projects, with the aim of helping channel early-stage investment towards this type of essential carbon solution.
The inclusion of Kita’s Carbon Purchase Protection Cover to the transaction structure adds a layer of security and stamp of confidence regarding project quality and performance.
Marex supports the Global Mangrove Trust’s mangrove restoration and conservation project in North Sumatra, to provide its clients and the wider market with an inventory of high-quality carbon credits.
London, 18 September 2024 – Kita, the carbon insurance specialist and Lloyds of London Coverholder, today announced the expansion of its insurance to cover Marex Group Plc (NASDAQ: MRX) investment in Global Mangrove Trust’s (GMT) high-integrity mangrove project in North Sumatra. Capacity for Kita is provided by leading specialty (re)insurance group Chaucer.
GMT’s mangrove project was launched under the OxCarbon Standard by YAGASU and The Global Mangrove Trust, with support from Marex. It focuses on the restoration and conservation of coastal mangrove ecosystems, with livelihood generation and social programmes integral to the conservation approach. Kumi Analytics provides verification using satellites, AI and on-the-ground monitoring.
Applying Kita’s Carbon Purchase Protection Cover to the project’s carbon credits adds a layer of security and acts as a stamp of confidence on the quality of the project itself. Kita undertakes in-depth risk assessment via its proprietary underwriting models and supports projects that meet its rigorous standards.
Marex provides essential liquidity, market access and infrastructure services to clients across energy, commodities and financial markets, including environmental commodities. It aims to be a leading provider of environmental commodities and support its clients as they transition to a low carbon economy.
Marex has invested in this blue carbon restoration and conservation project – known as 001- OxC – with YAGASU and The Global Mangrove Trust since 2021. Marex used carbon credits from this project to offset its Scope 1 & 2 GHG emissions in 2023 and 2022 and plans to use the project to provide its clients and the wider market with an inventory of high-quality, risk-assessed carbon offsets.
“We are delighted to be working with Marex to offer our risk management expertise in the service of their commitment to driving the credibility of the Voluntary Carbon Market. I believe the combination of risk assessment and management that insurance brings, combined with the strong MRV and carbon modelling executed within the underlying project, represents the next stage of the VCM – high integrity, rigorously-assessed carbon projects within a risk-mitigated transaction structure. The result is driving proactive financing towards high-quality carbon projects, while safeguarding project stakeholders and enabling positive outcomes.”
Natalia Dorfman, CEO and co-Founder, Kita
“The Global Mangrove Trust project provides Marex, our clients and the wider market with an inventory of high-quality carbon offsets. Marex is proud to have been the initial financier of the Global Mangrove Trust’s project, and we are delighted that, following a professional risk assessment process, it has satisfied Kita's insurance criteria, as a Lloyds of London Coverholder. Kita’s coverage moves us towards more rigorous, regulated assessments.”
Bastien Declercq, Head of Environmental, Marex