Press Release: Kita launches carbon credit delivery risk insurance to EU & EEA insureds
Kita, the specialist carbon insurance company, is now authorised to insure companies throughout the EU and EEA, in addition to existing jurisdictional coverage for companies in the UK, USA, Canada, Singapore and Switzerland.
Amidst growing global demand for high-quality carbon credits, Kita’s expansion helps to de-risk early-stage investment into carbon solutions.
Lloyd’s of London coverholder, Kita, today announces the ability to insure carbon credit transactions from companies within the EU and EEA. This is in addition to existing coverage for buyers/investors domiciled in the UK, USA, Canada, Singapore and Switzerland. Kita has partnered with Pro MGA Solutions Europe GmbH to access this important market. The news marks a significant step in Kita’s growth.
Kita’s core product, Carbon Purchase Protection Cover (CPPC), protects buyers of high-quality carbon credits from the pre-validation stage against the possibility of future under-delivery. If carbon credits underperform, Kita covers the loss. This product offers a solution to multiple obstacles holding back the growth of the carbon markets (and, by default, the growth of the carbon solutions on which the carbon markets rely). By reducing risk in forward-purchased carbon credit transactions, CPPC helps to channel meaningful investment to carbon projects at a critical early stage, enabling them to scale their impact faster.
A recent report, co-authored by Kita and specialist management consultancy, Oxbow Partners, estimates the total addressable market for carbon credit insurance to be around $1bn of annual Gross Written Premium (GWP) in 2030, rising to $10-30bn GWP by 2050. Recognising the potential for substantial demand in the coming years, Kita will continue to increase their country presence, thereby enabling market participants from a range of jurisdictions to protect their high-quality carbon credit transactions with specialist carbon insurance products.
Today’s announcement follows other milestones from the company, including their growing expansion into insuring different carbon removal technologies, their most recent new market offering, Buffer as a Service, and their pioneering ability to pay eligible claims in replacement carbon credits.