NCX Explains Why Its 1-Year Forest Carbon Program Discontinued

NCX Pivots Its Business To Become A Carbon Marketplace - Carbon Herald
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NCX (Natural Capital Exchange) – a forest carbon projects developer aiming to democratize access to natural capital markets by opening up participation to landowners of all sizes, explained in a blog post why its 1-year term length forest carbon program was discontinued. 

In 2018 NCX started running a 1 year carbon credits program that included paying American landowners from carbon credits purchases to defer their timber harvests with one year, and also to grow older, more carbon-rich trees. 

Relevant: NCX Carbon Credits Map Brings Together Companies And Landowners

According to NCX, the program was the largest “US forest carbon project ever” and very popular with landowners. It has been designed to cater smaller scale private forest landowners as it did not include charges for participation and involvement could only be for just one year if they wanted. 

However, as NCX explains, the reason for the program to discontinue back in 2022 lied in the lack of demand from buyers. 

“Despite the rhetoric around a “climate emergency,” most of today’s carbon buyers prefer to pre-pay for “permanent” carbon storage decades or centuries in advance rather than maximizing present-day climate impact. Without buyer demand for the 1-year credits, NCX couldn’t continue the program,” explained the company. 

Another reason for the end of it was a lack of final approval for the certification of the program from the developer of carbon standards Verra. According to NCX, it worked two years with the organization towards approval of the 1-year program. Despite its approval of the initial concept note, the certifier had placed the final certification on indefinite hold, which effectively killed the program. Verra has also never stated a scientific or technical basis for its decision, as NCX states.

Relevant: Carbon Marketplace NCX Raises $50 Million In Funding

As a result of discontinuing the program, NCX has decided to shift its business towards helping landowners navigate the constantly changing carbon markets. The company offers now a marketplace for landowners to get paid for carbon removal, wildlife, timber, solar energy, and more. 

Participants willing to get registered can create a free account and get alerts whenever they qualify for a new program in their area. NCX evaluates the properties to estimate the potential revenues from the programs and helps them compare risks and rewards of each. 

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