Puro.earth and Kita announce partnership to make carbon insurance available for biochar projects via the Puro.earth marketplace in 2023, reducing transaction risk and accelerating upfront financing.
Nasdaq majority-owned Puro.earth, the world’s first standard, registry and B2B marketplace focused solely on carbon removals, and Kita Earth Limited, the carbon insurer for the climate crisis, are partnering to make Kita’s Carbon Purchase protection insurance available for biochar carbon credit purchases via the Puro.earth marketplace from next year.
This partnership is the result of a 4-month working group between Puro.earth and Kita. They were assisted by GECA Environment, the internationally recognized consulting firm in biochar and pyrolysis. As technical expert, GECA contributed in assessing and pricing the risks of biochar carbon credit pre-purchases and potential for under-delivery.
“Engineered carbon removal is an innovative space which needs to reach its full potential fast. While we help lift impediments for suppliers, we also work hard to mitigate non-delivery risks for our buyers. The creation of an insurance product against this represents a tremendous opportunity 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. De-risking transactions will scale the supply of quality carbon removal to meet the fast-growing demand. The inclusion in the value chain of this insurance has the potential to unleash a remarkable climate impact.” said Arnaud Defrance, VP Funding Solutions at Puro.earth.
“Puro.earth, GECA and Kita all share the same goal – scaling the Carbon Dioxide Removal industry to right the climate crisis. Our working group with Puro.earth and GECA was instrumental in helping assess the key risks our insurance needed to cover for biochar carbon delivery risk. We are excited by this next stage of partnership – the scale of Puro.earth’s marketplace means we can create positive climate impact faster, de-risking forward purchases to support suppliers and buyers alike in meeting their climate targets,” said Natalia Dorfman, CEO of Kita.
“As expert in biochar, biochar carbon removal and pyrolysis, we are delighted that Kita is focused on developing insurance for the growing biochar carbon credit space. We see Kita’s product as instrumental to solidify stakeholder trust in the market and increase the level of investment in engineered carbon removal solutions. With this insurance product, buyers should feel more confident executing prepayments and long-term offtakes, key components to catalyze an industry-wide scale-up. We look forward to further collaboration with Kita and Puro.earth to expand the range of insurance products available for biochar projects,” said Melissa Leung, Director of Business Development and Carbon, GECA Environment.