A carbon markets investor backed by Swiss-trading house Mercuria said on Wednesday it had joined with two non-profits to raise an initial US$1.5 billion to help protect the Amazon, Reuters reported.
The ‘Race to Belém’, a nod to the Brazilian city hosting the next round of global climate talks in November, aims to sell credits tied to preserving the world’s biggest rainforest.
The initiative is the first major campaign by Silvania, a $500 million nature and biodiversity investment vehicle.
The move follows record-high temperatures across the world last year that are pushing the Amazon closer to the point where it becomes a net emitter of carbon emissions.
Race to Belém Chief Executive Keith Tuffley said after launching the scheme in the Brazilian state of Tocantins, that the hope was that other states would join and the initial US$1.5 billion funding target this year would be surpassed.
To help kick-start the project, Silvania said it would give a dollar in upfront capital to states for every ton in credits purchased, up to a total of US$100 million.
Conservation International Chief Executive M. Sanjayan said in a statement that these credits offered a “generational opportunity to reverse the economic drivers of deforestation”.
“This will be a seismic year for the future of the Amazon. We have a chance to look back on the trajectory of Amazonian protection in two distinct eras: pre- and post-COP30,” he said.
Reactions to Trump’s Paris accord withdrawal announcement
Day two of the World Economic Forum at Davos, Switzerland witnessed strong responses to U.S. President Donald Trump’s decision to withdraw from the Paris climate agreement, with European leaders stating in no uncertain terms that they will hold fort and remain a part of the global climate pact.
European Union chief Ursula von der Leyen said on Tuesday: “Europe will stay the course, and keep working with all nations that want to protect nature and stop global warming.” She insisted that the 27-nation bloc will stick to the landmark Paris climate accord. “The Paris Agreement continues to be the best hope for all humanity,” she said.
The Paris accord is aimed at limiting long-term global warming to 2.7 degrees Fahrenheit (1.5 degrees Celsius) or, failing that, keeping temperatures at least well below 3.6 degrees Fahrenheit (2 degrees Celsius) above pre-industrial levels.
United Nation’s climate chief, Simon Stiell speaking at a panel looking ahead to this year’s upcoming climate talks in Brazil said the “door remains open” for the United States. “The world is undergoing an energy transition that is unstoppable. Last year alone, over US$2 trillion was invested in the transition (to clean energy). And that compares to one trillion in fossil fuels,” he said.