ClearBlue, a leading expert in carbon markets, and Kita, a pioneer in carbon credit insurance, have announced a groundbreaking partnership which aims aims to revolutionise the landscape of environmental responsibility.
It will achieve this by providing Voluntary Carbon Market (VCM) stakeholders with enhanced data, risk mitigation, and transparency related to the procurement, management, and valuation of carbon credits.
Together, they form a synergistic alliance that addresses both the analytical and risk management aspects of adhering to climate goals through investment in voluntary carbon credits.
ClearBlue’s Delivery Risk Assessment (DRA) tackles the complexities of investing in and overseeing carbon project development by minimising exposure to potential project failures and discrepancies between estimated and issued credit volumes.
Drawing on ClearBlue’s extensive experience in offset development, which serves as the foundation for the DRA, the process is bolstered by Vantage technology and has been honed through collaboration with a diverse range of investors and financial institutions.
By considering factors such as location, registry, and project type, the DRA employs historical data to assess project delivery risk, estimating both the likelihood and magnitude of credit issuance.
On the other hand, Kita’s Carbon Purchase Protection Cover (CPPC) is a customised insurance solution designed for buyers, investors, and lenders involved in the forward purchasing of carbon credits.
This product shields against the risks associated with under-performance, providing assurance for transactions.
Launched in February 2023, CPPC offers protection against delivery failure, shortfall, and potential delays stemming from factors like counterparty risk, natural disasters, and alterations to carbon standards or methodologies.
The collaboration between ClearBlue and Kita creates a complementary alliance, addressing both analytical and risk management facets essential for aligning with climate objectives through voluntary carbon credit investments. This partnership not only streamlines informed purchasing and risk mitigation strategies but also elevates transparency and integrity within the Voluntary Carbon Market (VCM).
On the other hand, Kita offers innovative carbon credit insurance solutions, including the Carbon Purchase Protection Cover, tailored for buyers, investors, and lenders of forward-purchased carbon credits.
Michael Berends, CEO at ClearBlue, stated, “We are excited to collaborate with Kita to offer a comprehensive set of insights around carbon offsets for businesses committed to environmental stewardship. By combining our Voluntary Offset Insight tool as well as decades of expertise in offset project development, due diligence, and analysis on carbon offsets with Kita’s innovative carbon insurance, we aim to provide a holistic approach to sustainability, supporting organisations in their journey towards a low-carbon future.”
Paul Young, CTO and co-founder at Kita, expressed enthusiasm about the collaboration adding, “Modelling the risks of early-stage projects relies on analysing historical activities and their outcomes. It necessitates not only an expert understanding of the development process but also the technology to extract this data from deep within the documentation. Our partnership with ClearBlue has addressed this challenge, aiding Kita in developing insurance to support projects during this critical phase.”
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