Sao Paolo: Tocantins, a Brazilian state located at the edge of the Amazon rainforest, has announced plans to offer over 2.5 billion reais ($430.16 million) in carbon credits to bolster forest conservation through 2030, according to the state government on Thursday. These credits are part of a growing market where companies purchase carbon offsets to help meet voluntary climate goals by investing in projects that reduce greenhouse gas emissions.
The state’s goal is to sell around 50 million carbon credits, each credit representing one metric ton of carbon sequestered by Amazonian forests and other native vegetation across Tocantins. However, the exact value and number of credits will depend on the state’s success in reducing deforestation rates, according to an official statement.
Ahead of this announcement, the Tocantins government shared exclusive details about the plan with the international news agency Reuters. Protecting the Amazon is critical for climate stability, scientists note, as the forest absorbs substantial amounts of carbon dioxide that would otherwise contribute to global warming. Brazil’s federal government also recently reported a significant achievement in curbing deforestation, with Amazon deforestation hitting its lowest level since 2015 in the 12 months through July.
Tocantins plans to submit its project to the ART-TREES carbon credit standard for validation, with an official presentation set for the COP29 climate summit in Azerbaijan. Mercuria, a global commodities trading firm, is coordinating the sale process.
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The initial submission aims to certify between 17 and 18 million credits for carbon sequestered from 2020 to 2024, excluding a portion set aside for contingencies, such as wildfires. According to a source familiar with the deal, this initial batch could be valued at a minimum of 850 million reais.
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The sale of this initial batch of credits is expected to conclude in the latter half of 2025, with details still being kept confidential. This offering surpasses recent deals by major corporations such as Microsoft, Google, and Meta for forestry carbon credits in Brazil, and exceeds the scale of a similar credit sale from Brazil’s Para state to a consortium that included Amazon.
