A carbon markets investor backed by Swiss trading house Mercuria has partnered with non-profits Conservation International and The Nature Conservancy to launch a $1.5 billion initiative aimed at preserving the Amazon rainforest. The project, named the Race to Belém, references the Brazilian city that will host the next round of global climate talks in November.
The scheme seeks to generate and sell carbon credits tied to the protection of the Amazon, the world’s largest rainforest, by working with Brazilian states, farmers, and local communities. It marks the first major effort by Silvania, a $500 million nature and biodiversity investment vehicle.
The initiative aims to address criticisms faced by previous conservation projects by involving all levels of government, local communities, and landowners in its design and implementation. Covering a larger geographic area than traditional projects, the plan seeks to ensure more measurable environmental and social impacts.
The move comes amidst escalating climate concerns, with record-high global temperatures in recent years pushing the Amazon closer to a tipping point where it could become a net emitter of carbon, further complicating global efforts to limit warming.
Launching the initiative in Brazil’s Tocantins state, Race to Belém CEO Keith Tuffley emphasised the critical role of private sector investment in tackling climate change.
“The urgency to address climate challenges has only increased. The Race to Belém underscores the need for transformative private investments,” Tuffley said during the World Economic Forum in Davos.
Silvania plans to provide upfront capital to incentivise states, offering $1 per ton of credits purchased, up to $100 million. Credits will be classified under Jurisdictional Reducing Emissions from Deforestation and Forest Degradation (JREDD+), which covers larger reference areas than traditional REDD+ projects, enabling more reliable monitoring of environmental and social impacts.
The price per ton of carbon credits will be negotiated with buyers and could lead to hundreds of millions of tons of carbon savings. Deployment of the initiative is set to begin immediately, with additional phases rolling out over the next three to five years.
JREDD+ credits are already in use in countries such as Guyana, Ghana, and Costa Rica, offering a scalable model for addressing deforestation. Conservation International CEO M. Sanjayan described the initiative as a pivotal moment for Amazonian protection and said, “This will be a seismic year for the future of the Amazon. We have a chance to mark this year as a turning point for reversing the economic drivers of deforestation.”
The initiative’s launch comes as global climate commitments face challenges. The withdrawal of the United States from the Paris Agreement and slow policy implementation by governments have cast doubt on progress toward limiting global warming. The Race to Belém seeks to reignite momentum by leveraging private sector funding to drive meaningful climate action.
