Chestnut Carbon, a leader in nature-based carbon removal, has raised $160 million in Series B funding. The investment will support the company’s mission to transform degraded farmlands into thriving forests.
Carbon credits, representing the sequestration of one metric ton of carbon, have gained significant demand due to the urgent need for climate mitigation. Tech companies, in particular, have embraced carbon credits as a way to offset emissions from their rapidly expanding data centers.
Chestnut Carbon’s investment round was led by Canada Pension Plan Investment Board, Cloverlay, and DBL Partners, with additional support from universities, family offices, and other institutional investors. The funding serves as a testament to the growing recognition of carbon credits as a valuable tool in combating climate change.
Founded with a $200 million commitment from private equity firm Kimmeridge, Chestnut Carbon has expanded its focus beyond managing existing forests to include company-developed projects. The company currently owns over 35,000 acres of farmland and pasture targeted for reforestation.
With the newly acquired funding, Chestnut Carbon aims to increase its carbon credit capacity to 100 million metric tons by 2030, requiring the transformation of hundreds of thousands of acres back into forests. To achieve this goal, the company has entered into a long-term agreement with Microsoft for the purchase of 7 million carbon credits, facilitating the rehabilitation of 60,000 acres in the southeastern United States.
Despite the current demand for high-quality carbon credits, Chestnut Carbon’s target represents only a small fraction of annual carbon emissions. However, the potential for afforestation and reforestation to mitigate climate change is significant. A study suggests that the world could support over 2 billion acres of additional forests, which, once matured, could sequester approximately 205 billion metric tons of carbon.
Chestnut Carbon’s mission aligns with the urgent need to mitigate climate change and harness the power of nature as a solution. By restoring degraded lands and creating new forests, the company is contributing to a greener future and a more sustainable planet.
Original source: Read the full article on TechCrunch
