Kita provides insurance for Marex’s investment in Mangrove Carbon Credit project

Kita, a carbon insurance specialist and Lloyds of London Coverholder, has announced the expansion of its insurance services to support Marex Group Plc’s investment in the Global Mangrove Trust’s (GMT) mangrove restoration project in North Sumatra.

The insurance capacity for Kita is provided by the prominent specialty (re)insurance group Chaucer. The GMT mangrove initiative, developed under the OxCarbon Standard by YAGASU and The Global Mangrove Trust with backing from Marex, aims to restore and preserve coastal mangrove ecosystems.

Alongside, promoting social programmes and sustainable livelihoods. Kumi Analytics verifies the project’s progress using satellite technology, artificial intelligence, and on-site monitoring.

Kita’s Carbon Purchase Protection Cover, applied to the project’s carbon credits, enhances security and acts as a validation of the project’s quality. Kita ensures that projects meet strict criteria through detailed risk assessments via proprietary underwriting models.

Natalia Dorfman, CEO and Co-Founder of Kita, said: “We are delighted to be working with Marex to offer our risk management expertise in the service of their commitment to driving the credibility of the Voluntary Carbon Market.

“I believe the combination of risk assessment and management that insurance brings, combined with the strong MRV and carbon modelling executed within the underlying project, represents the next stage of the VCM – high integrity, rigorously-assessed carbon projects within a risk-mitigated transaction structure. The result is driving proactive financing towards high-quality carbon projects, while safeguarding project stakeholders and enabling positive outcomes.”

Marex Group, a key player in providing liquidity, market access, and infrastructure services across energy, commodities, and financial markets, including environmental commodities, aims to be a leader in helping clients transition to a low-carbon economy.

Since 2021, Marex has been involved in this blue carbon restoration project—referred to as 001-OxC—alongside YAGASU and The Global Mangrove Trust.

In 2022 and 2023, Marex used carbon credits from the project to offset its Scope 1 & 2 greenhouse gas emissions and plans to offer these high-quality, risk-assessed carbon offsets to its clients and the broader market.

Bastien Declercq, Head of Environmental, Marex, added: “The Global Mangrove Trust project provides Marex, our clients and the wider market with an inventory of high-quality carbon offsets.

“Marex is proud to have been the initial financier of the Global Mangrove Trust’s project, and we are delighted that, following a professional risk assessment process, it has satisfied Kita’s insurance criteria, as a Lloyds of London Coverholder. Kita’s coverage moves us towards more rigorous, regulated assessments.”