Press Release: Kita announces pioneering approach for paying claims in carbon
Kita today announces the ability to pay insurance claims in replacement carbon credits, meeting a significant need for companies engaging in the carbon markets.
Kita has secured Letters of Intent from Everland, Pachama, Vertree and Respira to be founding members of a dedicated Carbon Supplier Pool which will provide replacement carbon credits in the event of a claim.
Paying insurance claims in replacement carbon credits gives carbon buyers and investors more flexibility in risk management options and greater confidence in meeting their high-integrity net zero targets.
Lloyd's of London coverholder, Kita, worked closely with lead capacity provider, Chaucer, on this trailblazing offering.
Kita, the carbon insurance specialist and Lloyd’s of London coverholder, today announces that clients of its Carbon Purchase Protection Cover insurance now have the option to receive insurance claims in carbon credits. This groundbreaking approach— believed to be amongst the first-of-its-kind in the insurance industry — highlights Kita’s commitment to scaling the carbon markets through innovative insurance products that underpin clients’ high integrity net zero goals.
“Kita’s mission is to drive more financing to scale high-integrity carbon projects, and we believe insurance is a key enabler to do this. We are proud to be leading the field when it comes to paying claims in carbon, and look forward to working with, and expanding, our Carbon Supplier Pool as we move forward.”
Natalia Dorfman, CEO and co-founder, Kita
The option for carbon credit claims will be available to clients that purchase Kita’s flagship insurance product, Carbon Purchase Protection Cover, which protects buyers of forward-purchased carbon credits against under-delivery.
Kita will work closely with lead capacity provider, Chaucer, to review and assess claims and offer replacement carbon credit payment. Cash payment for eligible claims will also remain an option.
“At the heart of our sustainability strategy is our commitment to being a force for good. Our ability to pay valid claims via carbon credits is a key step to ensure clients are able to meet their global net-zero and wider sustainability ambitions.”
Dr. Hayley Maynard, Head of Innovation, Chaucer
Replacement carbon credits for eligible claims will be distributed from Kita’s proprietary Carbon Supplier Pool. Everland, Pachama, Vertree and Respira make up the first members of Kita’s Carbon Supplier Pool. All are leaders in the provision of high-integrity carbon credits to the voluntary carbon market and have signed Letters of Intent to operationalise paying carbon insurance claims in carbon credits. There will be further recruitment to the Carbon Supplier Pool over time.
About Chaucer:
Chaucer are a leading specialty (re)insurance group working with brokers, coverholders and clients to protect and support business activities around the world. Our services are accessed both through Lloyd’s of London and the company markets.
We are defined by an enterprising, bespoke approach to (re)insurance, enabled by the individual character, experience and imagination of our expert teams.
Chaucer is a member of the China Re Group and backed by their financial and operational resources. China Re is one of the world’s largest reinsurance companies whose outstanding and comprehensive strength is rated A (excellent) by AM Best and A (strong) by S&P Global Rating.
About Everland:
Everland helps people prosper from conserving their forests and wildlife, resulting in climate change mitigation for the benefit of all. We mobilize transformative investments into forest communities who are on the frontlines of stopping deforestation, halting climate change, and safeguarding biodiversity, to deliver conservation outcomes at scale. Through deep due diligence and impact reporting, we ensure that clients invest in meaningful impact, and realize the full value of their support for REDD+ projects.
About Pachama:
Pachama is a technology company on a mission to restore nature to solve climate change. Harnessing the latest advancements in satellite imagery, remote sensing, and artificial intelligence, Pachama evaluates the carbon stored in our forests and monitors forest growth over time. Pachama has two distinct pathways to help brands meet their climate targets today and create long-term strategies for the future. With Pachama Verified projects, companies can invest in existing high-quality forest conservation and restoration projects vetted by Pachama’s rigorous evaluation process. Through Pachama Originals, companies can start projects from the ground up, making catalytic investments in the next generation of tech-enabled forest carbon projects.
About Respira:
Respira International is an impact-driven carbon finance business. Respira operates with an innovative offtake and profit-share model which reinvests back into local communities. Respira’s high-quality carbon credits allow corporations and financial institutions to mitigate their environmental impact. Respira channels private capital into climate solutions ensuring long-term relationships with trusted carbon project developers that enable its clients to use predominantly nature-based solutions to build sustainable, climate-positive businesses and portfolios. Respira’s team combines deep and varied experience working in global financial markets with a robust understanding of carbon project development in leading international conservation organisations.
About Vertree:
Vertree enables leading companies and institutions to invest in both nature and innovative climate technologies to reach their decarbonisation goals. Founded in 2020, Vertree is focused on driving positive environmental and social impact and providing its customers access to existing and future supply of high-integrity environmental commodities. It does this through directly financing quality emissions reductions and removals projects; partnering with renowned project developers; investing in innovative organisations and technology-based solutions; and providing its expertise in voluntary and compliance markets, trading, market analytics and risk management. Vertree is wholly owned by Hartree Partners, a leading energy and commodities trading firm with over 25 years’ experience in physical and financial, energy and commodities markets.