- International Carbon Registry (ICR) and Kita announce
partnership for independent risk management of ICR's buffer.
- ICR's focus on quality assurance, process efficiency and
transparent outcomes will be supported by the active risk
management provided by Kita's 'Buffer as a Service', enabling
technical management and risk assessment aligned to financial
industry norms.
- This announcement signifies the commencement of a governance
update to incorporate Buffer as a Service into ICR's protocols,
which will conclude with a public consultation to ensure clarity
for ICR's key stakeholders.
REYKJAVIK, Iceland and
LONDON, May
23, 2024 /PRNewswire/ -- International Carbon Registry (ICR)
and specialist carbon insurance company, Kita, are delighted to
announce an agreement for Kita to provide 'Buffer as a Service'
(BaaS) for ICR.
As per standard practice within the Voluntary Carbon Market
(VCM), ICR manages a 'buffer', a central pool of carbon credits to
which each project developer is required to individually
contribute. Buffers are intended to ensure permanence and
performance. However, as demonstrated by recent events in the wider
VCM, risk per project can be variable and unexpected losses can
occur, which have potential to damage the integrity of the carbon
scheme.
Kita's BaaS is independent risk management for ICR's buffer,
employing active risk controls, asset management best practices,
and project-specific risk assessment based on insurance
underwriting criteria. The aim is to help ICR proactively
identify, manage and mitigate key risks, in conjunction with
liquidity management and transparent reporting, to safeguard its
ability to achieve positive climate outcomes.
ICR's Mission Statement is focused on the guiding principles
of:
- Quality Assurance
- Innovation
- Global Impact
- Transparency
- Collaboration
Buffer as a Service will help ICR achieve these aims by leading
the way in the evolution of VCM buffers towards portfolio
management run in-line with financial industry standards.
Projected outcomes include: (i) strengthening buffer quality
assurance and reducing conflicts of interest through third party
administration by a regulated entity; (ii) enabling collaborative
solutions and smarter buffer contributions for high-quality project
developers; (iii) increased trust in buffer function and strength
via regular scenario analyses to assess and mitigate buffer
depletion risks; and (iv) facilitating transparent compliance with
evolving requirements within the VCM and wider regulatory
bodies.
The function of Buffer as a Service will follow established
norms in the wider financial markets to enable predictability of
process to ICR's stakeholders.
- "Innovation and transparency are built into ICR's core
operating principles, and as such we are delighted to be working
with Kita to implement Buffer as a Service. We believe ICR's
stakeholders will benefit from cost efficiencies, transparent
reporting and increased trust in the function and procedures of our
buffer. We've always said that our goal is not for ICR to
act as judge, jury and executioner, but instead to be supported by
strong third party experts, such that we can act as a courtroom -
attesting to the overall quality of projects that fit the ICR
standard, thus playing a pivotal role in mitigating climate change,
protecting ecosystems, and uplifting communities
worldwide."
- GuĂ°mundur Sigbergsson - Founder and CEO of the ICR
- "ICR stands out for their embrace of innovation, coupled
with strong operational efficiency and focus on compliance and risk
management. We share their belief that collaboration is a key
driver of progress and we are proud to be supporting the ICR team
via Buffer as a Service.
- Dr Paul Young, CTO and co-founder,
Kita
This announcement signifies the commencement of a governance
update of ICR's operating procedures to incorporate the new
structures of Kita's Buffer as a Service. This governance update
will conclude with a public consultation to ensure clarity
for ICR's key stakeholders.
Media Inquiries
Oli
Torfason, COO
ICR
oli@carbonregistry.com
Jana Phillips
Kita
jana.phillips@kita.earth
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https://news.cision.com/international-carbon-registry/r/international-carbon-registry-and-kita-build-next-generation-buffer-management,c3986095
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