Amazon has joined a $180 million carbon credits deal aimed at preserving the Brazilian rainforest, aligning with five other companies through the LEAF Coalition forest conservation initiative.
The initiative, founded in 2021 with support from companies and governments like the US and the UK, focuses on protecting the Amazon, the world’s largest rainforest and a critical player in absorbing greenhouse gases.
This deal marks LEAF’s first agreement in the Amazon rainforest and was announced by Helder Barbalho, Governor of the northern Brazilian state of Pará, during New York Climate Week.
The funds will be directed towards combating deforestation, benefiting indigenous communities, former slave communities, traditional extractivist communities, and family farms.
Barbalho emphasized the significance of Amazon, named after the rainforest, making its first purchase in this region, sending a powerful message about its commitment to forest conservation.
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Amazon confirmed its involvement in the deal and stressed the importance of tropical forest preservation in mitigating climate change.
Other tech companies such as Microsoft, Meta, and Google have also purchased carbon credits in Brazil this year, despite a global slowdown in demand for these offsets.
The $180 million deal will see Amazon and companies like Bayer, Capgemini, BCG, H&M, and Walmart Foundation buying 5 million carbon credits at $15 per credit—significantly higher than the average price for nature-based credits.
Each credit represents a reduction of one metric ton of carbon emissions from deforestation reduction efforts in the state of Pará between 2023 and 2026.
Next year, Pará will host the UN COP30 climate summit, highlighting Brazil’s efforts to reclaim its environmental leadership after years of severe deforestation.
