Kita

🗓 Mark your calendars now... 🗓 Next month, we are co-hosting a webinar with GECA Environnement which will explore the intersection of biochar and insurance and consider the ways in which project development risk can be managed. This will be an extremely useful event for anyone with an interest in the biochar sector and - in particular - project developers, investors and intermediaries. Biochar Project Development: Risks & Solutions Thursday 12th September, 4pm BST Melissa Leung, Director of Business Development & Carbon, GECA Environnement Thomas Merriman, CPO and co-Founder, Kita LINK TO REGISTER: https://lnkd.in/edVpbbA5 #carboninsurance #biochar #riskmanagement

✈ CORSIA updates ✈     With the recent launch of our political risk product, Carbon Political Risk Cover, we are able to provide protection for Host Country risks, including insurance in the event of CORSIA-related claims. Therefore, we are closely monitoring updates to CORSIA guidelines so that we can understand the implications for our clients and partners, and we can adjust and iterate our proprietary risk models accordingly.    In early August, the Technical Advisory Body (TAB) of the International Civil Aviation Organization (ICAO) held a webinar reviewing CORSIA guideline updates.    See below for some of the updates that are particularly relevant in relation to insurance:    ➡ Information on cancelled emission units to be "made publicly available at no cost and with no credentials required, and in a format that is machine-readable and standardized to every possible extent".    Carbon Standards will be required to share this data in a manner that is publicly-accessible and does not rely on specific permissions or logins. The requirement for data that is standardised and machine-readable is pivotal because it will help external agencies more easily extract project information, thereby boosting transparency and bolstering the ability of the carbon markets to create meta-registries or external datasets that can compare project information across Standards.    ➡ A programme will be considered 'operational' if it meets certain parameters, including: methodologies must be "finalized" and not in "draft form", a programme must have been "continually governed for at least the last two years".    This update is important because it prevents TAB from assessing Carbon Standards in the very early stages of establishment. It enables fledgling Standards to 'find their feet' before they become liable for evaluation. Kita can take this into account when reviewing the risk profile of different Standards.    ➡ Programmes should have in place procedures that guide the contents of Host Country Authorisations that include clearly-stated essential information.    This is important because the expanded version of this update specifies the minimum information that Carbon Standards must request from projects when securing their Host Country Authorisations. Many Carbon Standards already do this via a public Letter of Authorisation (LoA) template but the fact that this will become a more formalised process with clear requirements for data will ensure that there is more standardisation across the different Standards and projects. This in turn allows Kita and similar organisations to compare data more effectively and adjust underwriting models where necessary. These guideline updates signal a continued move towards greater standardisation and clarity, enabling us to further tailor our insurance products to address more precisely the market risks. Find out more about CPRC: https://lnkd.in/ejypcPqp #carboninsurance #corsia #politicalrisk

🔉 "What the Carbon Markets have been lacking is more comprehensive frameworks...to manage risk. And that's what we believe insurance can bring" 🔉 In June, Kita CEO and co-Founder, Natalia Dorfman, and Head of Insurance, James Kench, CFA, participated in the Carbon Project Finance Forum at GreenFin24, hosted by Trellis Group. After the forum, Natalia spoke to Paul Ellis of The Sustainable Finance Podcast about Kita's focus on risk management for the carbon markets. Watch the interview below. Find out more about some of the products and services that Natalia mentions at these links: Buffer Depletion Protection Cover: https://lnkd.in/eMXNpkB8 Buffer as a Service: https://lnkd.in/efW6dVbN Carbon Political Risk Cover: https://lnkd.in/ejypcPqp #carboninsurance #carbonmarkets #riskmanagement

Last year, we published an in-depth report on the integration of Insurance and Buffer Pools within the Carbon Markets. Since then, we have released tailored products and services that aim to address the challenges that we identified. In the article below, we summarise some of the points we made in the original report and we outline our Buffer Depletion Protection Cover and Buffer as a Service. Reach out to us to find out more about the work we do in this area: https://lnkd.in/e4tzSBhe #carboninsurance #bufferpools #carbonmarkets

👀 ICYMI: A primer on Political Risk Insurance for the Carbon Markets 👀 Political Risk Insurance is a familiar product in existing markets, offering essential protection against a range of adverse actions in situations where businesses engage in overseas trade and investment. But it is equally necessary for cross-border transactions in the rapidly-evolving carbon markets. Kita's unique understanding of both insurance and carbon makes us well-placed to offer a targeted new political risk product that: - protects those investing in/operating in the carbon sector in politically-uncertain environments - helps to mitigate the risks associated with correspondingly adjusted credits - offers comprehensive coverage for Article 6 uncertainties - covers disputes over carbon rights - and a range of other risks We've written an introduction to the complexities, challenges and opportunities around introducing political risk insurance to the carbon markets and we've highlighted some of the ways that project developers and investors can proactively manage the risks inherent in the space through developing standardised LoA templates and wider Project Development Agreement frameworks that satisfy insurance requirements. Read the full blog here: https://lnkd.in/eEaXbeib Find out more about Kita's Carbon Political Risk Cover: https://lnkd.in/ejypcPqp

It sounds like a platitude, but we really do have such a fantastic team here at Kita. It is constantly inspiring to be surrounded by colleagues who are not afraid to take risks (even if we are in the business of mitigating risk 😉 ) and who pursue the course of action most aligned with their values and beliefs. Huge congratulations to our data scientist, Mansi A., who graduated yesterday with an MSc with Distinction. We are very lucky to have you helping to analyse the complex and vast data available and identifying the insights and patterns that enable us to offer carefully-calibrated insurance coverage for the ever-evolving carbon markets. #carboninsurance #datascience #carbonmarkets

🌳How does insurance encourage and protect forestry natural capital investments?🌳 James Kench, CFA, Kita Head of Insurance was invited to chat to Shauna Deidre Matkovich on The ForestLink podcast to answer this question and many more. The conversation explored: - The ways in which insurance can operate as an enabler to mobilise capital towards natural climate solutions - The risks that insurance can address and the way in which Kita's products and services are structured to mitigate these risks - Insurance as a contributor to due diligence and as a signifier of high quality carbon credit transactions Have a listen to the full episode here: https://lnkd.in/ePNJhW_9 Find out more about why carbon insurance is a fundamental pillar of the carbon markets: https://lnkd.in/e3h-CtBK #carboninsurance #carbonmarkets #naturalclimatesolutions

At Kita, we’re focusing on how our insurance products and services can help protect clients from uncertainties in the carbon markets. Amongst the risks that pose a threat to the carbon markets is political risk, arising from the adverse actions or inactions of governments. As political volatility increases around the world and Article 6 of the Paris Agreement and CORSIA continue to evolve, participants in the carbon markets face greater uncertainty in carbon credit transactions. In May 2024, WTW released its 7th annual political risk survey report, carried out by Oxford Analytica (part of FiscalNote). The survey highlights how the geopolitical landscape is becoming increasingly turbulent and how respondents continue to be more concerned about political risk and how it affects their business operations. The survey shows that in 2024 businesses are considering political risk more seriously and including it in their risk management strategies. From the report: “An overwhelming 96 percent said they have added new political risk management capabilities this year. More than 70 percent reported experiencing a political risk loss. Large majorities reported concern about political risk in Asia, Europe, Russia, the Middle East and North America.” The report illustrates respondents’ shifts in attitudes on political risk from panic to action between 2023 and 2024. This reinforces our belief that there is an appetite for proactive risk management and a clear market for bespoke political risk insurance for the carbon sector. Building on the success of traditional political risk insurance, our newest product, Carbon Political Risk Cover, tackles the unique challenges of political uncertainty in the carbon market. Read the full 2024 WTW Political Risk Survey report: https://lnkd.in/eNhytyQi Find out more about Kita's Carbon Political Risk Cover: https://lnkd.in/ejypcPqp #carboninsurance #politicalrisk #carbonmarkets Sam Wilkin

❓ Why is Political Risk Insurance essential for the Carbon Markets❓ On Monday, we announced the launch of our specialist political risk insurance product, Carbon Political Risk Cover, in partnership with Tokio Marine Kiln. James Kench, CFA, Kita's Head of Insurance, spoke to The Political Risk Podcast about the way that our insurance helps underpin transactions in the carbon markets and how this new product protects against risks related to host country authorisations. Most of the financing for the carbon markets is coming from the Global North, while most of the projects themselves are in the more politically-exposed Global South. This generates risks that could impact the scale-up of the carbon solutions that the world so desperately needs. Carbon Political Risk Cover (CPRC) uses traditional PRI as its base but extends this to incorporate our deep understanding of the carbon markets and specific carbon-related considerations. Our underwriting model considers the host country's 'maturity' in the carbon space, the comparison of a country's net export capability in relation to net zero goals and what treaties (whether multilateral or bilateral) are in place should a host country renege on their commitment. Kita's bespoke risk assessment criteria and nuanced understanding of both the insurance and carbon sectors enables us to provide policies that protect transactions and encourage investment. 🎧 Listen to the full episode here: https://lnkd.in/ezkqJzQH Find out more about CPRC: https://lnkd.in/ejypcPqp A big thank you to David Benyon MA VR for inviting us onto the podcast. #carboninsurance #carbonmarkets #politicalrisk

🌍 Kita and Tokio Marine Kiln launch Political Risk Insurance Product 🌎 We are thrilled to announce the launch of our newest insurance product, Carbon Political Risk Cover, in partnership with Tokio Marine Kiln. This policy will insure project developers and their investors against risks such as confiscation, nationalisation, forced abandonment, license cancellation and political violence. It will cover losses for both parties should a project’s host country revoke agreements that enable the credits to count towards external offsetting strategies. 👀 Read the full press release here: https://lnkd.in/eGuK_SJM 📎 Learn more about Carbon Political Risk Cover here: https://lnkd.in/ejypcPqp #carboninsurance #politicalrisk #carbonmarkets Laura G. Ed Parker, Miranda Quigley