Kita has launched a non-payment insurance product aimed at unlocking institutional finance for carbon and natural capital projects by de-risking cashflows for lenders and investors. The cover protects against non-payment risk across project finance, prepayment facilities, offtake receivables and other credit exposures linked to carbon and nature-based projects.

Lead capacity is provided by MS Amlin, with support from Chaucer Group and Tokio Marine Kiln.

Louise Scott, political risk underwriter at MS Amlin, said: “We’re proud to be the lead capacity provider, which reflects our belief in the role insurers can play in unlocking capital for climate and nature -based initiatives, an area we’ve made significant inroads into, recently. The transition to a low carbon economy depends on the ability to finance credible projects and grow them at scale – yet many stall due to counterparty credit risk. This solution helps overcome that challenge and enables banks to deploy capital with greater confidence, especially in emerging markets.”

James Kench CFA, managing director, insurance, at Kita, added: “Financing the transition needs more than good intentions – it needs bankable risk transfer. Non-payment insurance gives banks and investors the confidence to fund credible carbon and nature projects at scale. By moving counterparty risk onto a strong, regulated balance sheet, Kita’s NPI can offer lenders and buyers the protection they need to unlock capital and move projects from pipeline to real-world impact.” 

Backing from established Lloyd’s market capacity underlines growing confidence in insurance-led risk transfer solutions for climate and nature finance.

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