NCX raises $50M for natural capital markets

NCX, the science-driven forest carbon marketplace aimed at fighting climate change, has raised $50 million in funding.

NCX operates a marketplace for big companies seeking to buy carbon offsets. Those companies are matched with landowners who commit not to harvest their trees. The companies pay those landowners through NCX, which acts as the operator of the marketplace and verifier of carbon and trees on the property.

Energy and sustainability investor Energize Ventures led the round. Other investors include J.P. Morgan, Intercontinental Exchange (ICE), Dalus Capital, Clearvision Ventures; and includes significant follow-on funding from existing investors Scribble Ventures, as well as Marc Benioff’s Time Ventures.

The financing round is expected to support expansion outside of the United States in addition to the formation of new natural capital markets created to serve the growing $1 billion voluntary carbon market.

“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, said Zack Parisa, CEO of NCX, in a statement. “We also know that society values forests for reasons beyond carbon and timber, such as wildlife habitat and water yield. NCX is going to apply our data, science, and forestry practices to build markets that create the forests society wants and needs.”

Joining the NCX Board of Directors is Katie McClain, partner at Energize Ventures, who brings two decades of experience in clean energy policy and background scaling companies in the climate and sustainability space.

“The global voluntary carbon market is growing rapidly as the private sector addresses the urgency of offsetting emissions,” said McClain, in a statement. “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 corporations and communities to take positive action towards climate change.”

“The development of easily accessed carbon and natural capital markets is key to meeting the significant demand for these sustainable investment options,” said Anton Pil, head of global alternatives, J.P. Morgan Asset Management, in a statement. “This investment in NCX is the next step in our mission to be at the forefront of innovative carbon solutions.”

In its first year of the exchange, NCX generated participation from 2,470 landowners with a collective 4.3 million acres across 39 states. The result was 1.13 million MTCO2e of expected climate impact across an area bigger than the state of Connecticut. Carbon credit buyers incentivizing the delayed harvest of forests through the NCX marketplace include Microsoft, Rubicon, South Pole, Incyte, and others.

The NCX marketplace – a natural capital exchange – monetizes the benefits of forest stewardship through carbon credits at a new level of integrity that corporations can trust to help them meet ambitious net-zero goals and create lasting, meaningful impact for the climate, the company said.

The approach to valuing forest carbon is based on IPCC science, forest economics, and cutting-edge statistical models, and we have worked with academics to hone it. In addition to its own expertise, NCX has received concept note acceptance from Verra, an international standards development organization, recognized as a leader in voluntary carbon offset trading.

NCX monitors carbon stocks and harvest activity on every acre of property in compliance with accreditation organizations, allowing it to measure carbon sequestered above baseline with precision. NCX measures and verifies carbon storage at the start and end of an annual project. The company’s ton-year accounting approach ensures the credits sold are permanent and not at risk of reversal due to natural disasters.