bright bluea leading expert on carbon markets, and Kita, a pioneer in carbon credit insurance, is pleased to announce a groundbreaking partnership. This collaboration aims to revolutionize the environmental accountability landscape by providing Voluntary Carbon Market (VCM) stakeholders with improved data, risk mitigation and transparency around the procurement, management and valuation of carbon credits. By combining ClearBlue’s unparalleled market analysis and expertise with Kita’s innovative carbon credit insurance solutions, market participants will gain greater confidence in market transactions.
Leveraging its robust technology platform (ClearBlue Vantage), along with its wealth of data and real-world experience in carbon markets, ClearBlue has assessed hundreds of nature-based project methodologies – Enhanced Forest Management (IFM) and Afforestation, Reforestation and Revegetation (ARR) – assess delivery risk. The results of this analysis have been integrated into Kita’s underwriting model for its core product, Carbon Purchase Protection Cover, an insurance policy for supply risk. Including this analysis strengthens Kita’s ability to more accurately address supply risks.
ClearBlue’s Delivery Risk Assessment (DRA) addresses the challenges of investing in and managing the development of carbon projects by limiting exposure to project failures and discrepancies in estimated versus issued credit volumes. ClearBlue’s offset development experience underlying the DRA is supported by Vantage technology and has been refined through collaboration with various investors and financial institutions. The DRA takes into account a wide range of parameters, such as location, register and project type, and uses historical data to quantify project delivery risk and estimate the probability and volume of issuance.
Kita’s Carbon Purchase Protection Cover (CPPC) is a tailor-made insurance product for buyers, investors and lenders of forward-purchased carbon credits, providing protection against the risk of underperformance and providing a stamp of confidence in transactions. CPPC was launched in February 2023 to provide protection against delivery failures, shortages and in some cases even delays arising from counterparty risk, natural disasters and carbon standard or methodology changes. Together, ClearBlue and Kita form a synergistic alliance that addresses both the analytical and risk management aspects of meeting climate goals by investing in voluntary carbon credits. This partnership not only facilitates informed voluntary purchasing of carbon credits and risk mitigation strategies, but also improves the transparency and integrity of the Voluntary Carbon Market (VCM).
Relevant: ClearBlue Markets launches the Sustainability Leader’s Guide to the Voluntary Carbon Market
“We are excited to work with Kita to provide a comprehensive set of insights around carbon offsets for companies committed to environmental stewardship,” said Michael Berends, CEO of ClearBlue. “By combining our Voluntary Offset Insight tool and decades of expertise in offset project development, due diligence and carbon offset analysis with Kita’s innovative carbon insurance, we aim to provide a holistic approach to sustainability and support organizations on their journey to a more sustainable climate. low-carbon future.”
Paul Young, CTO and co-founder at Kita, expressed his excitement about the partnership, saying: “Modelling the risks of early-stage projects relies on analyzing historical activities and their outcomes. It requires not only an expert understanding of the development process, but also the technology to extract this data deeply from the documentation. Our partnership with ClearBlue has addressed this challenge and helped Kita develop insurance to support projects during this critical phase.”
This partnership represents a milestone in efforts to support companies actively investing in critical carbon projects by providing an additional layer of risk mitigation on their investments. Companies and investors looking to embrace sustainability and environmental goals in a comprehensive way now have a formidable ally in the combined expertise and products of ClearBlue and Kita.
Read more: Kita continues its global expansion with Switzerland and Singapore
