Carbon credit insurer Kita predicts the global carbon insurance market will grow to at least $1.8 billion in gross written premiums by 2030. This growth is expected to be driven by mandatory insurance requirements in compliance markets. Increased demand for permanence based coverage is also a key factor. As carbon markets mature, insurance is becoming a critical tool for managing the risks associated with carbon credit validity and long term sequestration.
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Kita is forecasting a jump to 1.8 billion in premiums by 2030. They point to compliance markets and permanence risk as the main drivers. It is a short snippet, but it shows insurance is becoming a standard part of the carbon stack.
The mention of mandatory insurance in compliance markets is the real story here. If regulators start requiring coverage for permanence, it forces a level of standardization on how we measure carbon sequestration risk.
The 1.8 billion figure is a neat round number. I wonder how much of this is based on actual pipeline projects versus optimistic projections of compliance market expansion. Do we have data on current take up rates for permanence cover?
