Article Summary: Amazon and other companies have agreed to buy carbon offset credits that will help preserve its namesake rainforest in the Brazilian state of Para in a deal worth about $180 million. Amazon and at least five other companies will make the purchase through the LEAF Coalition forest conservation initiative, which it co-founded in 2021 with a group of companies and governments, including the United States and the United Kingdom.
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What is LEAF initiative?
Lowering Emissions by Accelerating Forest finance Coalition (LEAF) has made its first deal in the Amazon, the world’s largest rainforest. This deal is important for tackling climate change because the trees absorb a lot of greenhouse gases.
New York’s Climate Week- A pathway of the climate agreement
The Para state government and the LEAF Coalition first shared details of the deal with Reuters. Para Governor Helder Barbalho announced the agreement on Tuesday during New York Climate Week.
Barbalho said the state would only collect the portion of sales’ proceeds needed to continue cutting greenhouse gas emissions. The rest would go to Indigenous peoples, former slaves and traditional extractivist communities, as well as family farms.
It sends an important message. “A company named after the Amazon is buying from a state in the Amazon,” Barbalho told Reuters.
Amazon- a formidable renewable energy buyer
Amazon said the purchase was important for protecting tropical forests and tackling climate change. In 2021, the company announced a partnership with the non-profit organization known as The Nature Conservancy to purchase carbon credits from projects that protect and restore forests. It became the most formidable corporate buyer of renewable energy of the world.
Tech giants Microsoft, Meta and Google have bought CO2 offsets in Brazil this year.
5 million credits at $15 each
Amazon, Bayer, BCG, Capgemini, H&M and Walmart Foundation will buy 5 million credits at $15 each. That is much more than the average last week of $4.49 for nature-linked carbon credits, according to Allied Offsets.
Each credit is for cutting 1 metric ton of carbon emissions from cutting deforestation in Pará state between 2023 and 2026.
A game of another 7 million credits
Another 7 million credits will be available for other companies to buy. The US, UK and Norway have guaranteed some of the credits and will buy them if companies don’t.
Para to host UN COP30 climate summit in 2025
In 2025, Para will host the UN COP30 climate summit. This is part of President Luiz Inácio Lula da Silva’s plan to improve Brazil’s environmental record after years of deforestation.
Para’s deforestation deep-rooted history
Para has had the most deforestation since 2005, but less since 2021. From January to August this year, 20% less forest was destroyed in Para than last year.
Barbalho said at Climate Week that the government will be able to trace cattle supply chains by 2026.
What the Climate Insider says about this deal?
“The involvement of companies like Amazon in high-profile deals such as this underscores the increasing corporate recognition of the link between business sustainability and environmental health. By aligning with the LEAF Coalition, these firms are also investing in the credibility and effectiveness of forest conservation initiatives, which are essential for carbon offset markets to maintain integrity and impact.” The Climate Insider portal noted.
Who will be affected with these deals?
On the flip side, there have been instances where carbon offset projects have been implemented in areas inhabited by indigenous peoples without their consent. It leads to conflicts and social injustices.
Read More about Carbon Credits: https://www.inpactimes.com/carbon-markets/
