Carbon Marketplace NCX raises $50M

To meet net-zero objectives, companies across the globe are investing heavily in carbon offsets.

The carbon offset industry has boomed over the past year. In fact, the Voluntary Carbon Market (VCM) is now valued at over $1 billion. That’s up from just $300 million in 2018. And many experts believe it has the potential to reach $100 billion by 2030.

J.P. Morgan and Marc Benioff’s TIME Ventures seem to agree.

They took part in a Series-B led by Energize Ventures to support NCX – which raised $50 million.

What are carbon offsets, and why are they so popular?

Carbon offsets are tools that companies can use to “neutralize” their carbon emissions. This is done through various environmental projects.

Simply put, one carbon offset equals one metric ton of carbon.

NCX is a carbon marketplace that companies can use to find and purchase these carbon offsets.

First, NCX uses satellite images and machine-learning software to map forest areas. Once mapped, NCX serves as a go-between for companies and landowners to agree.

Suppose the landowners choose to refrain from cutting down their trees (for compensation). In that case, companies can claim those “offsets” against their own carbon emissions. It’s mutually beneficial – landowners are compensated, and companies can meet emissions goals.

So, if a landowner promises to keep trees intact, and a company pays them to do so, the company is doing something beneficial for the environment.

Note that many of these companies are working towards net-zero emissions. However, the technology to drastically reduce emissions or remove them altogether isn’t quite where it needs to be. So, offsets serve a purpose interim.

NCX then takes a percentage of the purchase price.

NCX was formally known as SilviaTerra. It was founded in 2010 by two students who met studying forestry at Yale.

To date, NCX has raised $75 million.

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