As many as six major global brands have agreed to purchase carbon offset credits to help conserve the Amazon rainforest in Brazil’s Para state. The deal, valued at approximately $180 million, will be facilitated through the LEAF Coalition, a forest conservation initiative co-founded by Amazon in 2021 alongside various companies and governments, including the US and UK.
In this deal, Amazon, along with Bayer, BCG, Capgemini, H&M, and the Walmart Foundation, will purchase 5 million credits at $15 each—well above the average market price of $4.49 for nature-based carbon credits. Each credit represents the avoidance of 1 metric ton of carbon emissions from deforestation in Para between 2023 and 2026.
This marks LEAF’s first agreement within the Amazon, the world’s largest rainforest, which plays a critical role in mitigating climate change by absorbing vast amounts of greenhouse gases.
The Para state government and the LEAF Coalition shared details of the agreement, with Governor Helder Barbalho announcing it during New York Climate Week. The governor emphasised that only the funds required for ongoing deforestation reduction efforts would be retained by the state, with the majority of proceeds benefiting Indigenous peoples, traditional communities, and family farms.
Barbalho said, “Reaching a price of $15 per tonne, well above current market levels, demonstrates buyers’ confidence in the effectiveness of our efforts and the high integrity of the credits we are generating. Our jurisdictional REDD+ system is based on a robust model, anchored in strong social participation. Our population, including Indigenous Peoples, Quilombolas, Traditional Communities and Family Farmers, is not only heard but works together and shares the benefits. We hope that Pará, along with Ghana and Costa Rica, which have also signed LEAF agreements, can be an example for other forest governments – both in the Amazon and other territories – to follow.”
“Amazon is proud to work alongside LEAF Coalition participants, governments of the United States, United Kingdom, and Norway, and the Brazilian State of Pará, on the first LEAF agreement in Brazil. As a co-founder of the LEAF Coalition, we know that halting and reversing tropical forest loss is scientifically necessary to address climate change,” said Kara Hurst, Chief Sustainability Officer at Amazon.
Confirming the agreement, Leyla Ertur, Director of Sustainability, H&M Group said, “We are excited to be among the first companies to support the fight against deforestation in the Amazon with the LEAF Coalition and the deal with Pará in Brazil. We are committed to doing our part in fighting climate change and protecting nature. LEAF is a great example of scaling innovation and collaboration for progress. Protecting tropical forests offers one of the biggest opportunities for reducing emissions in the coming decade and we are proud to be a part of it.”
An additional 7 million credits will be available for purchase by other companies, with the US, UK, and Norwegian governments guaranteeing a portion of the credits if they remain unsold. Para is set to host the UN COP30 climate summit next year, reinforcing President Luiz Inacio Lula da Silva’s commitment to restoring Brazil’s environmental reputation after years of increasing deforestation.
Julie Gehrki, President of the Walmart Foundation said, “As a participant in the LEAF Coalition, the Walmart Foundation looks forward to supporting Para in addressing deforestation in the Brazilian Amazon – thereby helping reduce emissions, preserve biodiversity, and support the livelihoods of local communities.”