Chaucer Announces Innovative New Partnership With Kita To Insure The Delivery Risk Of Carbon Sequestration Projects
Chaucer, the global specialty (re)insurance group, today announced a new partnership with carbon credit insurance specialist Kita to bring first-of-its-kind insurance products to the carbon markets. Kita’s first product, Carbon Purchase Protection Cover, insures the buyer of forward-purchased carbon credits against delivery risk, removing a significant protection gap.
Increased buyer trust in carbon delivery leads to greater flows of capital to help scale carbon sequestration projects at the rate necessary to fight the climate crisis. Chaucer is investing in Kita as well as providing lead underwriting capacity; follow capacity will be provided by Munich Re Syndicate and RenaissanceRe. Kita was approved as a Lloyd’s coverholder in December 2022.
“Carbon sequestration projects will play a key role in the fight against climate change and Kita, alongside Chaucer, will be instrumental in enabling higher integrity in the carbon markets by safeguarding the quality and performance of carbon purchases.
“Chaucer is delighted to partner with Kita. Providing insurance for carbon credit projects will give businesses the confidence they need to invest at scale in high quality carbon sequestration projects and meet their net zero targets.
“We believe our partnership and investment in Kita will revolutionise the carbon credit industry and help Chaucer deliver our ESG commitments and be a genuine force for good in supporting the sustainable transition.”
Hayley Maynard
HEAD OF INNOVATION AT CHAUCER
“We are honoured to be working alongside a (re)insurer of Chaucer’s stature, as well as Munich Re Syndicate and RenaissanceRe, to bring Carbon Purchase Protection Cover to the market. To prevent the worst impacts of climate change, we must remove gigatons of CO2 from the atmosphere annually. This is a mammoth task, and it requires de-risking and access to capital for carbon sequestration solutions. Insurance can act as a fundamental enabler – by removing risk and increasing trust in the market, insurance will help drive capital to help quality carbon projects scale. With its innovative approach to new products and strong commitment to the fight against climate change, Chaucer is the perfect partner to help Kita pursue our mission of bringing this carbon insurance to market at speed.”
Natalia Dorfman
CEO AND CO-FOUNDER AT KITA