Kita – the carbon insurance specialist and carbon from the UK standardWilder Carbon, announced the very first insurance for a buffer poolwith capacity provided by Chaucer – an international specialist insurance and reinsurance group.
A buffer is a central pool of carbon credits to which each project developer must contribute individually. In the case of losses from carbon projects in the Wilder Carbon standard causes the buffer to be depleted, the insurance policy will function as a means to ensure that carbon credit buyers remain healthy.
Relevant: Kita and ICR collaborate for innovative buffer risk management
The insurance protection for the Wilder Carbon buffer aims to increase confidence by protecting against underperformance and risk of default/withdrawal. It ensures the integrity and sustainability of the carbon credit program to help drive meaningful financing flows towards high-quality carbon projects.
“By working with Carbon Standards, carbon insurance can increase resilience and build confidence in the integrity and functionality of buffer pools. We are pleased to be working with Wilder Carbon on a breakthrough insurance offering for their high-value nature-based carbon credit buffer, and hope that this policy will lead the way for the broader integration of insurance into buffers in the voluntary carbon market,” says Natalia. Dorfman, CEO and co-founder, Kita.
Wilder Carbon projects aim to restore natural ecosystems in a way that captures more CO2, increases wildlife and delivers benefits to people and communities, such as flood prevention. The Wilder Carbon Standard is the company’s developed mechanism that strives for the greatest possible degree of additionality and sustainability and the lowest possible risk of carbon leakage.
Relevant: Kita extends risk insurance for carbon credit deliveries to the EU and EEA
“Wilder Carbon is proud to be the first Carbon Standard to include “Buffer Insurance” to protect against loss for Wilder Carbon’s Buffer. Partnering with Kita for innovative insurance solutions will complement Wilder Carbon’s already robust risk mitigation, trusted delivery partners and commercial approach to protect carbon credit investments in our validated projects. This will reduce barriers to market access and secure further investment in nature’s restoration,” said Sarah Brownlie, Wilder Carbon program director.
