Non-Payment Insurance
Insurance to protect against non-payment of contractually due amounts
NPI protects lenders against the risk of non-payment under project finance, prepayment facilities, offtake receivables and other credit exposures associated with carbon and natural capital projects.
By transferring counterparty credit risk to a rated insurance balance sheet, NPI helps reduce loss-given-default, supports capital relief for banks and has the potential to enable lower cost of capital for project sponsors.
Comprehensive NPI can 'swap' the credit rating ofthe debtor with the AA- rating of Kita's insurance capacity.
Non-Payment Insurance enables proactivity in high-quality project financing.
Why it matters:
Unlocks funding: NPI helps banks and investors move past credit concerns and back credible carbon and nature projects.
Faster deals: Insurance cover can replace or complement traditional guarantees, speeding up time-to-close.
Better terms: Developers can access more attractive financing for projects, from early-stage scale-up to large infrastructure.
Scalable impact: The policy can be applied to standalone projects or to portfolios across multiple jurisdictions, thereby supporting global climate finance.
Where it fits:
Pay-on-delivery and prepayment structures: De-risk receivables and pre-finance working capital against future deliveries.
Project finance: Wrap counterparty exposures in SPV structures to improve bankability.
Portfolio and warehousing: Protect aggregated exposures across multiple projects and jurisdictions.
Alignment with sustainability objectives: Cover can be aligned to performance milestones and verified delivery frameworks.
Non-Payment Insurance — How it works
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:
Appetite across voluntary and compliance carbon markets; natural capital and ecosystem restoration transactions; environmental attribute certificates and other risks
Policy period:
Our insurance term can extend up to 7 years.
Additional services:
Complementary ongoing digital MRV services
In addition to protecting lenders, NPI can also support Project Developers:
For project developers, NPI can mean easier access to debt and investment. If a project is struggling to raise debt or to finalise an offtake because a counterparty’s credit is the blocker, NPI can provide the security needed to move forward.
By shifting non-payment risk to a rated insurer, counterparties can price and approve deals faster – often at a lower cost of capital. Typical use cases include pre-finance against contracted offtakes, working capital for scale-up, and improving lender terms on project finance.
