Climate Finance | March 3, 2022

NCX secures $50 million to expand its market for forest-based carbon offsets

Roodgally Senatus
ImpactAlpha Editor

Roodgally Senatus

ImpactAlpha, March 3 — NCX, formerly known as SilviaTerra, connects landowners who commit to not cutting down their trees with corporations looking to buy carbon offsets. The San Francisco company last year raised $20 million from investors, including the Microsoft Climate Innovation Fund, Marc Benioff’s TIME Ventures and Shell Environmental Products, to create a 1.2 million-acre forest carbon project across 10 U.S. states.

NCX has raised $50 million to expand outside of the U.S., and build new natural capital markets for the voluntary carbon market. “If we’re going to make a significant impact on climate goals, it’s going to take more than just U.S. forests,” said NCX’s Zack Parisa.

Carbon markets

Prices for nature-based removal have lagged in the voluntary carbon markets, which are fragmented and opaque, according to Paul Gambill of Nori, which raised $7 million last month for a blockchain-based carbon marketplace. Moss.Earth, which specializes in Amazon forest conservation projects, raised a $10 million Series A round. Last year, Hartree Partners and Wildlife Works teamed up to finance forest protection via the voluntary carbon markets.

Parisa says NCX leverages data and AI-driven remote sensors “to build markets that create the forests society wants and needs.”

The company’s Series B round was led by Energize Ventures, with participation from investors such as J.P. Morgan Asset Management and Clearvision Ventures. TIME Ventures reupped in the round. Energize’s Katie McClain will join NCX’s board of directors.