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 buy plots of land where NCX and its participants are growing trees to offset pollution created by the companies.

Energy and sustainability investor Energize Ventures led the round. Other investors include J.P. Morgan Asset Management, 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.