Buffer as a Service
Advanced risk management for Carbon Standard Buffers
Buffer as a Service (BaaS) is independent risk management for a Carbon Standard's buffer, helping reduce risk and increase operational efficiency, while rewarding high quality project developers. BaaS includes:
Active Risk Controls: Implementing measures and scenario analyses to identify and mitigate key risks.
Asset Management Best Practices: Ensuring effective management of the buffer pool.
Project-Specific Risk Assessments: Conducting detailed evaluations based on insurance underwriting criteria.
Advisory Services: Advice on where further incorporation of insurance could be beneficial for the Carbon Standard and/or its stakeholders.
By leveraging these risk management strategies, Kita helps Carbon Standards proactively manage and mitigate risks, ensuring the buffer’s ability to achieve positive climate outcomes.
Kita is the carbon insurance specialist, with risk assessment capability gleaned from pricing and assessing carbon projects across the carbon markets.
Our insurance is focused on unlocking more financing to scale high quality carbon projects and we see BaaS as an extension of that. Our technical insurance underwriting expertise is the key underpinning behind our BaaS service.
While BaaS is a standalone service, it enables a virtuous circle with Kita's insurance products, enabling further economic efficiencies for Carbon Standards and projects alike.
Why use Buffer as a Service (BaaS)?
What is Buffer as a Service?
Kita's active risk management helps Carbon Standards manage their buffers with increased efficiency and reduced conflict of interest.
BaaS helps proactively identify, manage and mitigate risks via upfront insurance-driven risk assessment, liquidity management and transparent reporting.
The Standard delegates specific operations to Kita, thus maintaining control while reducing operating costs and achieving improved economies of scale.
Management team with 40+ years' experience in portfolio management, managing billions in assets under management (AUM)
Why use Buffer as a Service?
BaaS provides a USP to Carbon Standards by:
strengthening buffer integrity and reducing conflicts of interest via 3rd party management;
attracting and rewarding high-quality project developers based on smarter buffer contributions; and
facilitating compliance with evolving requirements within the VCM and wider regulatory bodies.
BaaS is quickly implementable and adaptable to ensure ongoing alignment with market requirements.
BaaS follows established norms in the wider financial markets to enable predictability of process to both the Carbon Standard and its stakeholders.
