Kita secures £4m seed investment to bring essential carbon insurance products to market

Kita has announced a highly over-subscribed £4m seed funding round led by Octopus Ventures, alongside existing investors Insurtech Gateway, Carbon13 and Climate VC, and new investors Chaucer Group and Hartree Partners. 

Kita is the carbon insurance specialist; helping reduce risk in carbon credit transactions with insurance products that safeguard the quality and performance of carbon purchases. The goal is to enable more upfront financing so carbon removal solutions can access greater flows of consistent capital and scale their impact faster.  

Kita’s vision is to build a comprehensive portfolio of insurance products in this brand-new insurance market to protect against risks for all parties in the carbon markets ecosystem - from sellers, to buyers, to intermediaries.  

Natasha Jones at Octopus, said: “Carbon removal plays a critical role in the fight against climate change and there is a pressing need to scale these technologies at an unprecedented size and pace. Insurance is essential to enable this rate of growth by de-risking investments into carbon removal solutions and building in incentives that increase the supply of high-quality carbon credits in the market.

"We are thrilled to have the opportunity to work with Kita in bringing ‘first of its kind’ carbon insurance solutions to market to help unlock billions of dollars of investment into the space, increase transparency in the Voluntary Carbon Market, and fight the climate crisis.” 

Kita’s first product, Carbon Purchase Protection Cover, insures the buyer of forward purchased carbon removal credits against carbon delivery risk, removing a significant protection gap. Increased buyer trust in carbon delivery leads to greater flows of capital to help carbon removal projects scale at the rate the world needs to fight the climate crisis.  

Natalia Dorfman, CEO and Co-Founder, Kita, said: "To prevent the worst impacts of climate change, we must remove gigatons of CO2 from the atmosphere annually for the remainder of the 21st century."

"This is a mammoth task, and it requires de-risking and access to capital for carbon removal solutions. Insurance can act as a fundamental enabler - by removing risk and increasing trust in the market, insurance will help drive capital to help quality carbon removal projects scale.  Kita’s passion is developing these insurance products and we are delighted to be bringing our first product, Carbon Purchase Protection Cover, to market.” 

Find out more here.