Carbon insurance specialist Kita has announced the expansion of its insurance coverage to include Marex‘s investment in Global Mangrove Trust‘s (GMT) mangrove restoration and conservation project in North Sumatra, Indonesia.
This move is aimed at boosting early-stage investment in essential carbon solutions by adding a layer of security and confidence to mangrove projects, Kita said in a statement on Thursday.
Marex, a UK-based provider of environmental commodities and financial services, supports the GMT project, which is focused on the restoration of coastal mangrove ecosystems.
The project, launched under the OxCarbon Standard by YAGASU and GMT, also includes livelihood generation and social programs.
Verification is provided by Kumi Analytics, utilizing satellite data, artificial intelligence (AI), and on-the-ground monitoring.
Relevant: TMK And Kita Partner On New Political Risk Insurance For CO2 Credit Projects
Kita’s Carbon Purchase Protection Cover enhances the credibility of the project by ensuring its quality and performance through rigorous risk assessments.
With underwriting support from Chaucer, Kita’s insurance helps mitigate risks for investors and boosts confidence in carbon credit markets.
Marex has been involved with this mangrove project, known as 001-OxC, since 2021 and has used its carbon credits to offset its Scope 1 and 2 greenhouse gas emissions in 2022 and 2023.
The project is part of Marex’s broader efforts to offer its clients a reliable inventory of high-quality, risk-assessed carbon offsets.
In a comment to the announcement, Kita’s CEO, Natalia Dorfman, highlighted the importance of combining risk management and rigorous carbon modeling, which strengthens the voluntary carbon market (VCM).
On behalf of Marex, Bastien Declercq, Head of Environmental, expressed enthusiasm over having met Kita’s insurance standards as a Lloyds of London Coverholder after undergoing a thorough risk assessment.
