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Case Study

Kita Earth – Carbon Credits Insurance

COUNTRY/REGION

Global

START - END DATE

2022 - Ongoing

REALM

Terrestrial

Kita is a Lloyd’s Coverholder providing insurance and risk advisory services for carbon and natural capital markets. The company offers products addressing key risks in carbon credit transactions: Non-Delivery Insurance for credits not delivered as forecast, Counterparty Insurance for parties failing to fulfil obligations, Buffer Depletion Insurance protecting Carbon Standards’ buffers against reversal events, and Political Risk Insurance covering host country regulatory changes and CORSIA-related risks. Kita also provides risk advisory services including Buffer as a Service for Carbon Standard buffer management, Risk Assessment/Monitoring, and Portfolio as a Service for comprehensive carbon portfolio risk mitigation. The company’s approach aims to increase standards of delivery, transparency and investment in high-integrity carbon removal and nature restoration solutions.

Insurance trigger type

The mechanism by which an insurance payout or financial response is activated

Indemnity

Insurance scheme target

Beneficiary of Insurance Scheme

Investors

Insurance scheme developer

The type of institution(s) providing insurance or guarantees

Private

Insured risk

The primary category of risk addressed or managed by the insurance solution.

Performance and Delivery Risk, Political and Sovereign Credit Risk

Insurance product type

Adapted from UNEP FI framework subcategories

Insurance to de-risk/enable investment in nature

Partners:

Kita Earth, Lloyds of London

Referred by:

NATURANCE