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Firms Including Amazon to Buy $180 Million in Carbon Credits From Namesake Rainforest

Amazon and several other companies have committed to purchasing carbon offset credits to aid in the preservation of the Amazon rainforest, located in the Brazilian state of Pará, as part of a deal worth approximately $180 million. The companies, including Amazon, will make the acquisition through the LEAF Coalition, a forest conservation initiative established in 2021 by a consortium of companies and governments, including the U.S. and the U.K.

Firms Including Amazon to Buy $180 Million in Carbon Credits From Namesake Rainforest

Amazon and several other companies have committed to purchasing carbon offset credits to aid in the preservation of the Amazon rainforest, located in the Brazilian state of Pará, as part of a deal worth approximately $180 million. The companies, including Amazon, will make the acquisition through the LEAF Coalition, a forest conservation initiative established in 2021 by a consortium of companies and governments, including the U.S. and the U.K.

This marks the first agreement under LEAF within the Amazon, the world's largest rainforest, which plays a crucial role in mitigating climate change due to the vast amounts of greenhouse gases absorbed by its trees. The government of Pará and the LEAF Coalition shared details of this exclusive deal with Reuters. Governor Helder Barbalho of Pará is expected to officially announce the agreement during New York Climate Week, coinciding with the UN General Assembly, where around 900 related events are scheduled.

"It sends a powerful signal: a company named after the Amazon making its first purchase in partnership with an Amazon state," Barbalho told Reuters.

Amazon confirmed the transaction, underscoring the critical role that conserving tropical rainforests plays in the fight against climate change. Despite a global slowdown in demand for carbon credits, tech leaders like Microsoft, Meta, and Google have all made significant offset purchases in Brazil this year.

Amazon, alongside Bayer, BCG, Capgemini, H&M, and the Walmart Foundation, will collectively purchase 5 million carbon credits at $15 per credit, which is well above last week's average of $4.49 for nature-related credits, according to data from Allied Offsets. Each credit signifies a reduction of 1 metric ton of carbon emissions by preventing deforestation in Pará between 2023 and 2026.

An additional 7 million credits will be made available for other companies, with the U.S., U.K., and Norway guaranteeing a portion of these credits and agreeing to purchase any remaining credits if other buyers do not step in.

Next year, Pará will host the UN COP30 climate summit, which is a central part of President Luiz Inácio Lula da Silva's initiative to rehabilitate Brazil's environmental standing after a period of increased deforestation. While Pará has been Brazil's leading state for deforestation since 2005, rates of destruction have been decreasing since 2021. In the first eight months of this year, deforestation in Pará covered an area larger than New York City, marking a 20% reduction compared to the same period last year, according to preliminary federal data.