Wednesday, December 11, 2024
HomeClimate ChangeHost of COP30 in Amazon achieves record-breaking carbon credit sale

Host of COP30 in Amazon achieves record-breaking carbon credit sale

“Record-breaking $180m deal to save Amazon rainforest announced by coalition of governments and corporations”

A coalition of developed countries and multinational corporations has made a historic agreement to purchase carbon credits from the Amazon rainforest in Pará state, Brazil, worth $180 million. The LEAF coalition, launched in 2021 to mobilize finance for forest protection, announced this groundbreaking deal, which is considered the largest of its kind in history.

Pará state, which will host the COP30 climate summit next year, faced the highest deforestation rate in the Amazon last year, with an area the size of Uruguay being destroyed. In response to this alarming trend, the coalition of governments and corporations has stepped in to support forest conservation efforts in the region.

Governor Helder Barbalho of Pará state expressed his excitement about the deal, highlighting that a portion of the funds will be allocated to indigenous and local communities. He described the agreement as “extraordinary” and emphasized the importance of valuing living forests to combat deforestation effectively.

The carbon credit initiative involves around 30 multinational corporations, including Amazon, Bayer, BCG, and H&M Group, purchasing credits from the project at $15 per tonne. Additionally, the governments of the UK, US, Norway, and South Korea have pledged to back the deal with purchase guarantees, ensuring a stable market for the credits.

LEAF expects to generate approximately 12 million forest credits by reducing deforestation in Pará from 2023 to 2026. The coalition has already implemented similar projects in Costa Rica and Ghana, selling credits at a lower price of $10 per tonne.

Eron Bloomgarden, CEO of Emergent and coordinator of the LEAF coalition, believes that this approach represents a crucial opportunity to halt and reverse tropical deforestation by 2030. By channeling billions in climate finance to the Global South, the coalition aims to make a significant impact on forest conservation efforts worldwide.

As the LEAF deal sets a precedent for forest protection in the Amazon, close monitoring of the interventions will be crucial to ensure that the funds are effectively reducing emissions and combating deforestation. Mariana Oliveira, manager of the Forests, Land Use, and Agriculture Program at WRI Brasil, emphasized the importance of transparency and accountability in tracking the progress of the initiative.

Pará state has already committed to an emissions reductions strategy, aiming to restore millions of hectares of forests and achieve net-zero forest emissions by 2036. With additional funding from the LEAF coalition, the state can further enhance its efforts to combat deforestation and protect the Amazon rainforest.

Overall, the LEAF deal represents a significant step towards sustainable forest management and climate action, showcasing the potential for public-private partnerships to drive positive change in environmental conservation efforts.

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