JPMorgan, Microsoft and nature carbon removal startup Chestnut Carbon have partnered to close a landmark $210 million debt deal to deploy nature-based carbon removal projects.
Why it matters: The transaction could be a turning point for an underfunded sector.
DBL Partners’ Nancy Pfund, who’s firm backed Chestnut Carbon, tells Axios that the deal was structured like energy infrastructure with milestones, independent measuring, reporting and verification, and clear risk allocation.
Zoom in: The transaction applies traditional project finance to nature-based carbon removal for one of the first times. JPMorgan is leading a lending syndicate that includes CoBank, Bank of Montreal and East West Bank to deliver the non-recourse loan.
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