NEW YORK CITY, U.S. — The Brazilian state of Pará, home to a quarter of the country’s Amazon Rainforest, signed what it has deemed “the largest carbon credit deal in the world.” Per the agreement, the state is selling 12 million carbon credits to a conglomerate of 30 multinational corporations, including Amazon, Bayer and Walmart Foundation. The sale totals 1 billion reais ($183 million) but could evolve into a multiyear, multibillion-dollar carbon offset program. The state’s governor, Hélder Barbalho, signed the agreement to much fanfare during New York Climate Week on Tuesday, Sept. 24, with the Lowering Emissions by Accelerating Forest Finance (LEAF) Coalition of corporations. However, Mongabay’s interviews with nearly a dozen sources revealed many more steps and challenges to overcome before the deal becomes a reality. For now, the participating companies have agreed to purchase 5 million carbon credits for $15 per metric ton of CO2 or equivalent GHG emissions. The amount is based on deforestation reduction in the Amazon between 2023 and 2026. Another 7 million credits are being made available to the private sector, with the governments of Norway, the United Kingdom and the United States committing to covering the costs of unpurchased credits in case there are no other buyers. But before any money changes hands, the state of Pará must acquire certification from the Architecture for REDD+ Transactions (Art Trees) — a process that could take another 18 months, per the Amazon Environmental Research Institute (IPAM), which acts as the state’s technical adviser. “We…This article was originally published on Mongabay
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