Amazon is one of several companies to agree to buy carbon offset credits to support the conservation of the rainforest in the Brazilian state of Pará, in a deal valued at approximately $180 million.
The initiative, undertaken through the LEAF Coalition, marks a significant effort to protect the world’s largest rainforest. The rainforest is vital in curbing climate change due to its massive carbon absorption capacity.
LEAF Coalition’s Landmark Deal
The carbon credit purchase is part of the LEAF Coalition’s forest conservation initiative, which Amazon helped establish in 2021 alongside a consortium of companies and governments, including the United States and the United Kingdom.
This agreement represents LEAF’s first deal in the Amazon rainforest.
The Pará state government and the LEAF Coalition provided exclusive details of the deal with Governor Helder Barbalho scheduled to announce the agreement during New York Climate Week.
This event, parallel to the UN General Assembly, underscores the global significance of forest conservation efforts.
Amazon’s Commitment to the Rainforest
Amazon’s involvement in the agreement sends a strong message about the company’s dedication to preserving the tropical forest, especially given its name’s association with the rainforest.
Governor Barbalho said:
“Clearly it sends an important message: A company with a name referencing Amazon making its first purchase with a state in the Amazon.”
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Other Companies Joining the Effort
The initiative has attracted participation from several other major corporations, including Bayer, BCG, Capgemini, H&M, and Walmart.
These companies have agreed to collectively purchase 5 million carbon credits at $15 per credit, which significantly exceeds the average price of $4.49 per credit for nature-linked offsets last week, as reported by Allied Offsets.
Each credit represents a reduction of one metric ton of carbon emissions through efforts to reduce deforestation in Pará state from 2023 to 2026.
An additional 7 million credits will be available for purchase by other companies. The US, UK, and Norwegian governments have also guaranteed a portion of these credits, committing to buy them if companies do not.
Brazil’s Efforts to Curb Deforestation
The state of Pará has been a hotspot for deforestation since 2005, but recent trends show a positive decline.
According to preliminary federal government data, an area larger than New York City was deforested in Pará from January to August this year, representing a 20 percent decrease compared to the previous year.
The state’s efforts are part of President Luiz Inácio Lula da Silva’s broader initiative to restore Brazil’s environmental credentials, especially as Pará prepares to host the UN COP30 climate summit next year.
Looking Ahead: A Step Toward Sustainable Conservation
The $180 million carbon credit investment by Amazon and other firms represents a meaningful step toward rainforest conservation.
As more companies recognize the importance of supporting initiatives like LEAF, there is hope that these collaborative efforts can significantly reduce deforestation and help protect one of the world’s most crucial ecosystems.
