According to reports, the new partnership aims to provide specialised biochar insurance exclusively for projects certified under the esteemed Puro Standard.
Kita’s move to partner with Puro.earth is driven by a desire to enhance its capacity to navigate the risks associated with carbon credit delivery, particularly in the realm of high-quality biochar projects.
Biochar is a “resistant soil amendment created by burning or gasifying biomass” that is mainly used in agriculture to enhance soil fertility, improve plant growth, and provide crop nutrition and improve the overall farming productivity.
The overarching goal is to establish a robust insurance ecosystem that instills confidence and ensures quality assurance in the scaling of biochar solutions.
The Puro Standard, known for introducing the first-ever biochar carbon removal crediting methodology to the market in 2019, continues to set the benchmark for transparency and quality assurance in the industry. Kita’s Carbon Purchase Protection Cover, a key insurance product, will exclusively be accessible to Puro-certified biochar projects. This exclusivity introduces an additional layer of due diligence and security, elevating the integrity of biochar carbon credit transactions.
Simultaneously, Kita is set to launch a proprietary risk framework, developed in collaboration with GECA Environnement. This framework will effectively quantify and manage risks associated with biochar carbon credits, further establishing Kita’s position as a leading expert in carbon removal.
Arnaud Defrance, VP of Funding Solutions at Puro.earth, emphasized the significance of biochar carbon removal as a crucial climate mitigation solution, saying: “Biochar carbon removal is an important climate mitigation solution which needs to reach its full potential fast. While we certify suppliers with the Puro Standard and issue CO2 Removal Certificates (CORC) to help them scale, we also collaborate with innovative partners like Kita to help the market grow.
“The creation of an insurance product represents a tremendous opportunity to reassure buyers and financiers to accelerate the growth of a supply constrained market. More buyers will now be able to offer prepayments to suppliers, filling some real funding gaps.”
The collaboration between Kita and GECA reinforces Kita’s expertise in carbon removal, particularly in technological methodologies. The development of a proprietary biochar risk framework is a testament to their commitment to effective underwriting capabilities, ensuring that policies are well-suited and purposeful in this emerging and essential market. As Kita continues to broaden its scope through collaborations, it is poised to play a pivotal role in shaping the future of biochar carbon insurance and carbon removal solutions.
Commenting on the move, Melissa Leung, Director, Business Development & Carbon, GECA Environnement, said: “Only a few years after the inception of this nascent market, GECA continues to observe increases in quality of carbon removals provided to buyers in the VCM. Kita, through its delivery risk insurance product for biochar, is providing a powerful de-risking mechanism, needed for buyers to increase their contributions to Net Zero through offtakes and investments.
“GECA is proud to support Kita in its rigorous approach to carbon insurance, including through the understanding of infrastructure, operational and commercial risks. The biochar sector has been waiting for solutions to scale for 20 years, and we believe our collaboration is one of those solutions.”
Tom Merriman, Chief Product Officer and Co-Founder, Kita, also concluded: “Demand for credits from biochar projects is huge. Our delivery risk insurance product safeguards transactions and – through our partnership with Puro and work with GECA – adds an extra level of security and transparency to this growing market.”
He added: “Insurance acts as a stamp of confidence, enabling corporate buyers to get the green light for their purchases and continue to make significant headway towards removing carbon from the atmosphere as part of their climate strategies.”
