ClearBlue Markets partners with Kita

ClearBlue Markets , a provider of global carbon market services, is collaborating with Kita , a carbon credit insurance company. The two will offer Voluntary Carbon Market (VCM) stakeholders improved data, risk mitigation, and transparency for carbon credits.

Using its ClearBlue Vantage platform and experience in carbon markets, ClearBlue reviewed nature-based project methodologies, including Improved Forest Management (IFM) and Afforestation, Reforestation, and Revegetation (ARR), to assess delivery risk. The results are integrated into Kita’s underwriting model for its Carbon Purchase Protection Cover, enhancing Kita’s ability to address delivery risk accurately.

ClearBlue’s Delivery Risk Assessment (DRA) helps manage carbon project investments by reducing the risk of project failures and discrepancies between estimated and issued credit volumes. The DRA considers various parameters like location, registry, and project type. It uses historical data to quantify delivery risk and estimate the probability and volume of issuance.

Kita’s Carbon Purchase Protection Cover (CPPC) is an insurance product for buyers, investors and lenders of forward-purchased carbon credits, protecting against the risk of under-performance. CPPC was launched in February 2023 to protect against delivery failure, shortfall, and in some cases even delay that arises from counterparty risk, natural catastrophe and changes at the carbon standard or methodology level. Together, ClearBlue and Kita form a synergistic alliance that addresses both the analytical and risk management aspects of adhering to climate goals through investment into voluntary carbon credits.