Amazon.com Inc. and five other companies have agreed to purchase carbon offset credits to fund the conservation of the Amazon rainforest in Brazil’s Pará state, in a deal valued at approximately $180 million.
The agreement brokered through the LEAF Coalition, marks Amazon’s first major investment in protecting its namesake rainforest, which plays a critical role in absorbing greenhouse gases and mitigating climate change.
The LEAF Coalition, which Amazon co-founded in 2021 alongside other corporations and governments from the U.S. and U.K., has signed its first deal with Amazon.
The initiative aims to curb deforestation and preserve one of the planet’s largest carbon sinks. Pará Governor Helder Barbalho and LEAF disclosed details of the deal to Reuters ahead of its official announcement during New York Climate Week.
“This sends a powerful message: A company named after the Amazon is now making its first purchase to protect the Amazon,” Barbalho told Reuters.
The agreement involves Amazon, alongside Bayer, BCG, Capgemini, H&M, and Walmart, collectively buying 5 million carbon credits at $15 per credit—substantially higher than last week’s average price of $4.49 for nature-based credits, according to Allied Offsets data.
Each credit accounts for a reduction of one metric ton of carbon emissions through efforts to reduce deforestation in Pará between 2023 and 2026.
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An additional 7 million credits will be available for future corporate buyers, with the U.S., U.K., and Norwegian governments guaranteeing a portion if corporate demand falls short.
This deal comes at a time when global demand for carbon credits has waned, although tech giants Microsoft, Meta, and Google have made similar purchases of Brazilian carbon offsets earlier this year.
The announcement bolsters Brazil’s environmental reputation ahead of the UN COP30 climate summit, which will be hosted in Pará in 2025, part of President Luiz Inácio Lula da Silva’s strategy to rebuild Brazil’s green credentials following years of rampant deforestation.
Although Pará has been Brazil’s top deforestation state since 2005, forest destruction has declined since 2021, with a 20% year-over-year reduction recorded from January to August 2024.
This deal underscores the growing commitment from corporations to invest in nature-based solutions to combat climate change, positioning Amazon at the centre of global efforts to reduce carbon emissions.
