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Carbon credit insurtech secures £4m investment

Image credit: Mumemories via Shutterstock

Kita, a London-based insurtech focused on reducing the risks associated with carbon purchases, has secured a £4m funding round.

Founded in 2021, Kita believes that insurtech is a key way to achieve carbon emission removal goals that are essential to combating climate change.

“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,” said Natalia Dorfman, co-founder and CEO of Kita.

“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.”

The new funding will go towards the launch of the company’s first product, the Carbon Purchase Protection Cover, which insures the purchase of carbon removal credits. The company said that by increasing the trust and protection in carbon removal purchases, it can encourage companies to deploy more capital towards decarbonisation.

The funding round was led by Octopus Ventures, alongside Chaucer Group, Hartree Partners, and existing investors Insurtech Gateway, Carbon13, and Climate VC.

“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,” said Natasha Jones, Octopus Ventures.

“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.”