Tokio Marine backs Kita against carbon credit non-delivery risk

The capital injection will extend cooperation across several group subsidiaries.

Carbon insurance specialist Kita today announced a strategic investment from Tokio Marine Group to support the expansion and security of global carbon markets.

The deal builds on Kita’s existing partnership with Tokio Marine Kiln, where the two firms developed political risk insurance products for carbon credit transactions. 

Following the new capital injection, Kita will broaden its cooperation across multiple subsidiaries within the Tokio Marine Group.

In Japan, Kita is partnering with Tokio Marine & Nichido Fire Insurance Co., Ltd. (TMNF) to create cover for carbon credit buyers. 

The insurance protects buyers against transaction risks, including scenarios where prepaid carbon credits are not delivered according to contract.

As part of the expanded agreement, Kita will work with TMNF to provide carbon project risk assessments using satellite-based analytics. 

TMNF plans to combine these satellite assessments with existing project support services offered by Nippon Koei, an engineering consultancy within Tokio Marine Group.

The combined services will offer clients a single process covering the entire carbon project lifecycle, including initial site screening, field survey evaluations, and ongoing support for carbon credit generation and delivery.