(VOR News) – Amazon, the preeminent online retailer globally, has secured an agreement to engage in a carbon offset credits program valued at 180 million dollars.
This is undertaken to contribute to the conservation of the Brazilian rainforest associated with the enterprise.
Amazon, in conjunction with five other groups, will execute the acquisition via the LEAF Coalition forest conservation project. This effort was initiated in 2021 with the support of Amazon, alongside many corporations and countries, including the United States and the United Kingdom.
First Amazon agreement by Latin American and Caribbean Foundation (LEAF).
The Amazon rainforest is a crucial element in combating climate change due to its substantial absorption of greenhouse emissions.
The LEAF Coalition and the administration of Para state were the first to disclose the specifics of the contract to Reuters exclusively. On Tuesday, Governor Helder Barbalho of Pará announced the deal. This statement occurred during New York Climate Week, coinciding with about 900 events alongside the United Nations General Assembly.
In his statement, Barbalho asserted that the state would only accept a fraction of the sales proceeds essential for sustaining its initiatives to mitigate greenhouse gas emissions. Indigenous peoples, communities historically subjected to extractivism and past slavery, and family farms will each receive a share of the remaining one percent of the earnings from the property sale.
Barbalho made the allegation in a distinct interview with Reuters. “It unequivocally conveys a significant message: a corporation named after Amazon executed its inaugural transaction with a state in Amazon,” Barbalho stated.
Amazon confirmed the acquisition in a statement.
The statement emphasised the imperative of safeguarding tropical forests in relation to the battle against climate change.
This year, notable firms such as Microsoft, Meta, and Google have all acquired carbon offsets in Brazil. This persists despite the fact that demand for carbon credits globally has remained constant.
Amazon, Bayer, the consulting firms BCG and Capgemini, the retail store H&M, and the Walmart Foundation will collectively acquire five million credits at a price of fifteen dollars per credit.
The cost of each credit will be fifteen dollars. Allied Offsets, a data provider, reveals a significant gain compared to the current average for nature-associated carbon credits, which was $4.49 during the preceding week.
COP30 Climate Change Conference
Each credit corresponds to a reduction of one metric tonne of carbon emissions. From 2023 to 2026, the state of Pará witnessed a decrease in deforestation, resulting in this decline.
An additional seven million credits will be accessible for acquisition by other companies upon their availability. A specific quantity of these credits has been assured by the governments of the United States, the United Kingdom, and Norway, and should corporations refrain from acquiring them, the governments will acquire them.
Para will host the United Nations Conference of Parties 30 (COP30) climate summit next year, a pivotal initiative in President Luiz Inacio Lula da Silva’s efforts to restore Brazil’s environmental reputation following years of escalating deforestation.
Despite a decline in the rate of damage in Para since 2021, it has consistently maintained the highest deforestation rate among states since 2005. This occurs despite the decreasing rate of devastation in Para.
A territory in Para, exceeding the size of New York City, saw deforestation from January to August of this year, as per preliminary governmental statistics. This represents a 20% decrease compared to the corresponding period last year, when the same region lost its forest cover.
During Climate Week, Barbalho said that by 2026, the government would achieve comprehensive traceability of cattle supply chains. This was articulated concerning the livestock industry. Cattle is a major contributor to deforestation in Para.
SOURCE: AF
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