Kita’s Non-Delivery Insurance (“NDI”) provides comprehensive protection against under or non-delivery of future carbon credits. This policy is developed for today’s market environment, in which early-stage carbon projects require upfront financing to deliver future carbon credits, however are inherently exposed to evolving risks over their long-term timeframes.
This risk is a deterrent to investment.
Non-Delivery Insurance
Comprehensive insurance policy protecting future credit deliveries
Kita's Non-Delivery Insurance is the solution, providing a creditworthy backstop against loss and certainty of expectation that unlocks finance for high-quality projects.
Non-Delivery Insurance can protect participants across the market via bespoke insurance tailored to your transaction:
Developers: supply-side NDI protects you against the risk of being unable to deliver against your contractual obligations for reasons outside of your control. In a market where liabilities are increasingly placed on developers, Kita’s insurance can help you reduce risk on your balance sheet and meet stakeholders’ risk management expectations.
Investors: demand-side NDI protects investors and buyers against the risk that their investment / pre-payment doesn’t result in the expected number of carbon credits within the timeframe expected, resulting in a loss of upfront capital as well as potentially additional onwards liabilities, for example against offtake contract obligations. This is a comprehensive insurance wrap that covers up to 100% of your investment value. For returns-focused investors who seek strong risk management, Kita’s NDI helps you manage both individual investments and build a strong portfolio.
Lenders: we recognise that some financing entities expect a repayment of their financing instead of a return in carbon credits. Kita’s team is experienced at working with your requirements to adapt NDI effectively.
As the longest-standing carbon insurance specialist, Kita has built the expertise required to cover a wide range of project types and transaction structures:
Stage: The majority of our clients invest into pre-validation projects, and we specialise in supporting clients in strong risk selection at this formative stage.
Contracts: NDI can be applied in transactions with a range of carbon contracts, e.g. pre-payments, investments, project financing with offtakes, streaming deals and other forms of investment structures.
Carbon types: we cover the widest range of carbon project types in the insurance market.
Insurance claims: We are unique in that Kita’s insurance claims can be paid in cash or replacement carbon credits, enabling flexibility for our clients.
Non-Delivery Insurance — How it works
The familiar framework of insurance as a risk mitigation mechanism provides confidence for in-house stakeholders to smooth the process of getting investments over the line.
Underwriting process:
We pride ourselves on tailored insurance policies rooted in deep knowledge and re-calibrated as we acquire new data.
We give indicative quotes quickly to enable upfront budgeting, and work closely with clients throughout their deal process.
Our focus is making the addition of insurance to a transaction an efficient and smooth process.
Point of purchase:
Most of our clients wish for us to line up their insurance so it can bind on the day of contract signing. We work with clients from the early stages of their deal process to ensure their insurance is tailored to their requirements.
Projects covered:
A wide range of carbon project types and countries.
Policy period:
Our insurance term can extend up to 10 years.
Additional services:
Kita uses remote monitoring technology to track and report back to you on the progress of carbon sequestration achieved by your carbon project while it is insured.
