Microsoft-backed startup raises $160 million to remove carbon through forests



02/13/2025 9:53 AM


Microsoft-supported startup Chestnut Carbon has secured $160 million to plant and revitalize trees on degraded farmland, thus integrating carbon credits for its clients, Bloomberg reports, referencing a company statement.



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Carbon credits are documents that verify the decrease or elimination of carbon dioxide in the atmosphere: one credit equals one ton of gas. If a company surpasses a designated emissions limit, it is required to either pay a penalty or acquire a carbon credit from the open market.

Chestnut intends to allocate the capital obtained from the investment round to aid reforestation and conservation initiatives. According to Chestnut CEO Ben Dell, the company plans to start delivering the initial carbon credits for reforestation in two years.

Chestnut Carbon's funding round occurs shortly after the startup finalized a deal with Microsoft to supply the company with 7 million tons of carbon credits. The contract stipulates that Chestnut Carbon will plant over 35 million deciduous and coniferous trees across 60,000 acres (around 24,280 hectares) in the United States.

source: bloomberg.com


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