- The Tocantins plans to sell 50 million carbon credits, worth over $430 million, by 2030 to fund forest conservation.
- The state will seek validation under the ART-TREES standard and present its project at COP29 in Azerbaijan.
- The sale could generate significant revenue, surpassing recent deals by major companies like Microsoft and Google.
The government of Tocantins, a Brazilian state near the Amazon, plans to sell carbon credits worth over 2.5 billion reais ($430 million) by 2030. The state aims to sell 50 million carbon credits, each representing one metric ton of carbon sequestered by its forests and native vegetation.
Companies will buy these credits to offset some of their greenhouse gas emissions and meet voluntary climate goals. The value and volume of the credits depend on Tocantins’ success in reducing deforestation. Experts emphasise that protecting the Amazon is critical to fighting climate change due to the large amounts of carbon dioxide its trees absorb.
Tocantins will submit its carbon credit project for validation under the ART-TREES standard, which ensures the credits meet international guidelines. The state plans to officially present the project at the COP29 climate summit in Azerbaijan later this year.
Mercuria, a commodities trading firm, manages the sale of carbon credits. A source familiar with the deal said that Tocantins plans to certify 17 to 18 million credits from 2020 to 2024. This batch of credits could generate at least 850 million reais. The sale is expected to close in the second half of 2025.
This deal is much larger than recent carbon credit transactions by companies like Microsoft, Google, and Meta. It also surpasses a similar deal by the Para state government, which sold credits to companies, including Amazon.
Tocantins’ success in this project depends on its ability to reduce deforestation. In recent years, the federal government has made progress in curbing deforestation in the Amazon, which hit its lowest level in 2023 since 2015. However, experts argue that continued efforts are necessary to prevent further environmental damage.
The carbon credit market is a critical tool in the fight against climate change. By purchasing credits, companies fund projects that reduce emissions, such as forest conservation initiatives. Tocantins’ project could set a significant precedent for other regions in Brazil and beyond.
Tocantins positions itself as a leader in carbon credit sales, with the potential to generate substantial revenue for its conservation efforts. If successful, the project could help finance further environmental protection and sustainable development in the state.
This deal highlights the growing importance of the Amazon in global climate discussions. As the pressure to address climate change increases, Brazil’s efforts to preserve its forests have attracted international attention. The Tocantins project aligns with broader efforts to promote carbon offset markets to balance emissions from industries that are difficult to decarbonise.
The sale of these carbon credits comes as the global carbon market expands. With large companies seeking ways to meet sustainability goals, demand for forestry credits is rising. Projects like Tocantins could be vital in reducing emissions worldwide while funding critical conservation efforts as the market matures.
If successful, the Tocantins project could offer a model for other regions to follow. It underscores the importance of protecting the Amazon rainforest and the role of carbon markets in supporting environmental conservation.