Pará, which has the highest deforestation rates in the Amazon, will receive financing from over 30 multinational companies, including Amazon, Bayer, and H&M Group, as well as governments such as the UK, US, Norway, and South Korea. These entities will purchase carbon credits at $15 per tonne, and the LEAF coalition aims to generate around 12 million forest credits between 2023 and 2026.

Pará's governor, Helder Barbalho, emphasized the importance of giving economic value to living forests, stating that this sale is a significant step toward reversing deforestation. The LEAF coalition's CEO, Eron Bloomgarden, added that this initiative represents a vital chance to halt tropical deforestation by 2030, while also channeling climate finance to the Global South.

Carbon Credits and Monitoring

While the project is seen as a potential model for protecting the Amazon, experts, including Mariana Oliveira from WRI Brasil, stress that close monitoring will be necessary. The connection between the carbon credit revenue and tangible reductions in emissions must be clear. Pará has already implemented strategies to reduce deforestation, including mandatory tracking of cattle supply chains and a goal to restore 5 million hectares of forests by 2036.

As the deal progresses, civil society is urged to ensure that local communities, especially indigenous peoples, are actively involved in the initiative, ensuring transparency and accountability.