Forest-focused carbon marketplace NCX announced that it has raised $50 million in a Series B financing round, aimed at funding the expansion of the company’s activities beyond the U.S. market, and the formation of new natural capital markets. NCX uses AI-based solutions to help landowners defer timber harvesting in order to allow mature trees to capture carbon, and connect to carbon buyers to provide carbon credits.
The financing was led by sustainability-focused alternative investment manager Energize Ventures and joined by J.P. Morgan, and Marc Benioff’s TIME Ventures, among others.
Zack Parisa, Co-Founder, and CEO, NCX, said:
“The Natural Capital Exchange has always been about enabling society to value all the benefits forests provide. We started with applying our forest data, AI-driven remote sensing, and rigorous accounting practices to carbon in the United States, but if we are going to make a significant impact on climate goals, it is going to take more than just US forests.”
NCX takes a unique approach to carbon markets, utilizing its AI platform, Basemap – co-created with Microsoft – to provide acre-by-acre intelligence on the location, diameter, and species of trees, in order to generate assessments of timber and carbon value for every acre of land, enabling landowners to effectively defer harvesting, and reliably determine the carbon impact of allowing the trees to mature. The solution enables landowners to participate in the carbon credit market without burdensome setup costs.
Anton Pil, Head of Global Alternatives, J.P. Morgan Asset Management, said:
“The development of easily accessed carbon and natural capital markets is key to meeting the significant demand for these sustainable investment options. J.P. Morgan’s investment in NCX is the next step in our mission to be at the forefront of innovative carbon solutions.”
Intercontinental Exchange (ICE), Dalus Capital, Clearvision Ventures, and Scribble Ventures also participated in the financing round. Additionally, NCX stated that Katie McClain, partner at Energize Ventures will join the NCX Board of Directors. McClain, said:
“The global voluntary carbon market is growing rapidly as the private sector addresses the urgency of offsetting emissions. When it comes to decarbonization, time is of the essence – and NCX’s solution reflects the importance of reducing emissions today while setting a new standard for transparency and quality. This market is still in its earliest of innings, and we’re excited to partner with NCX as they enable more companies and communities to take positive action towards climate change.”