ESG Post

Climate Change Environment

Brazil’s federal police bust $34M illegal carbon credit scheme

The Federal Police of Brazil arrested four persons implicated in the illicit sale of approximately US$34 million in REDD carbon credits. The raid conducted in São Paulo state was a part of ‘Operation Greenwashing’ in which the police confiscated significant assets including a speedboat, two airplanes and multiple luxury cars.

This crackdown was part of an investigation into a decade-long land fraud scheme originating from Lábrea in Amazonas state, involving duplication and forgery of property titles to illegally claim around 538,000 hectares of public land.

Besides trafficking in carbon credits, the criminal organisation was also engaged in illegal logging and cattle ranching within protected areas and selling virtual timber credits, using fraudulent environmental licensing.

The crime syndicate was also involved in the laundering of illegal timber harvested from Indigenous territories or protected zones through the purchase of fictitious timber credits. Over one million cubic meters of timber were extracted, resulting in environmental damages valued at US$114 million, with the criminal group also acquiring US$155 million worth of illegally occupied land.