NCX reveals reason behind termination of popular carbon program
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The Natural Capital Exchange (NCX), a forest carbon project developer, in 2018 had commenced a carbon credits program but was discontinued after a term of one year.
The program also planned to pay American landowners from carbon credit purchases to postpone their timber harvests for a year and grow carbon-rich trees.
In its blog post, NCX explained why their program terminated despite its popularity.
According to the blog post, the program was the largest ‘US forest carbon project ever’ and aimed to democratize access to natural capital markets by allowing landowners of all sizes to participate.
With the omission of participation, the project was designed to cater to smaller-scale private forest landowners. Moreover, the involvement period was only one year if participants wanted.
The blog post attributes a lack of demand from buyers to the program’s discontinuation.
Also read: New direct air capture facility begins trial in Oregon
Another reason for the termination was the failure to get approval for the program’s certification in accordance with the terms of Verra, the developer of carbon standards.
NCX worked with Verra for two years to validate the one-year program. The initial concept was approved. However, the certifier put a hold on awarding the final certification indefinitely, which led to the program’s termination.
Since the program’s termination, NCX has redesigned its business model and now focuses on helping landowners navigate the dynamic carbon markets.
It provides a marketplace for landowners who wish to get paid for carbon removal, wildlife, timber, solar energy, and activities associated with other sectors.
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