FAQs
What are carbon credits?
Carbon credits typically represent one tonne of CO2 equivalent which has been avoided, reduced, or removed from the atmosphere. Carbon credits can be used for multiple purposes, one of which is to offset hard-to-abate, residual carbon emissions.
What is carbon removal?
Carbon removal is the process of removing carbon dioxide from the atmosphere and locking it away decades, centuries, or millennia.
Per The Oxford Principles for Net Zero Aligned Carbon Offsetting:
“Most offsets available today are emission reductions, which are necessary but not sufficient to achieve net zero in the long run ensuring compatibility with the Paris Agreement goals.”
“Emission reductions include avoided emissions.
“In contrast, carbon removals are offsets generated by projects that remove carbon dioxide directly from the atmosphere.”
“Users of offsets should increase the portion of their offsets that come from carbon removals, rather than from emission reductions, ultimately reaching 100% carbon removals by mid-century to ensure compatibility with the Paris Agreement goals.”
What is covered by Kita’s carbon insurance products?
Kita offers a suite a bespoke carbon insurance products which protect our clients against a range of different risks across the carbon ecosystem. These include: Delivery Risk; Fraud & Negligence; Abandonment & Insolvency; Political Risk; and Buffer Depletion.
Kita’s Carbon Purchase Protection Cover (Delivery Risk Product) can cover terrestrial forestry, biochar, enhanced rock weathering, and mangrove projects. The rest of our products are technology agnostic.
What other services does Kita offer?
Alongside our core insurance products, we also provide a range of risk advisory services to help clients identify and understand insurable risks. Often these services are the first step towards purchasing an insurance policy.
We provide Risk Assessments, a bespoke appraisal of a project’s risk and insurability, across technical, commercial, and/or political risks. We also offer Buffer as a Service and Portfolio as a Service; both of which provide independent risk management for a pool of carbon credits, helping to reduce risk and increase operational efficiency. Buffer as a Service is for Carbon Standards. Portfolio as a Service is for any company holding a portfolio of carbon credits.
Are claims paid in cash or carbon?
Clients have the option to receive eligible insurance claims in cash or like-for-like replacement carbon credits. This offers clients flexibility in risk management options and greater confidence in meeting their high-integrity climate targets.
Replacement carbon credits for eligible claims will be distributed from Kita’s proprietary Carbon Credit Supplier Pool. Read more here.
How can we buy Kita’s insurance?
Please contact us to discuss. How you buy insurance will vary based on where you are located.
We often speak with clients early in their carbon purchase journey. We can also provide a risk assessment, as an initial review of the risk and insurability of a project, that can help to inform insurance purchase decisions.
Where can Kita provide insurance?
Kita can provide insurance to companies based in the UK, US, Canada, Switzerland, Singapore, EU and EEA. This is based on the location of the insured, not the carbon project. Carbon projects can be located worldwide, with some exceptions for countries with embargoes, sanctions, and/or regulatory restrictions.
We are continually working on expanding our regulatory remit so please get in touch if you are based in another jurisdiction.
Do I have any counterparty risk with Kita?
Kita is a Lloyd’s Coverholder which means we have a credit rating which stems from Lloyd’s of London. Kita is backed by established insurance companies with A-rated paper, and these companies hold regulated capital on our behalf and pay our clients’ claims. Even if Kita were to go out of business, our clients’ claims would still be covered for the life of their policy.