Reforestation startup Mombak has secured R$100 million in financing from Santander Brasil and Brazil’s national development bank BNDES, marking a significant step forward for the country’s carbon removal market.
The deal makes Mombak the first company to receive funding under Brazil’s “New Climate Fund”, a R$10 billion initiative launched in 2023 to support climate-related projects. Santander is acting as the financial intermediary, highlighting increased interest from private lenders in the emerging sector.
Mombak, which acquires or partners on degraded land in the Amazon to replant native species, aims to generate carbon credits for companies seeking to offset emissions. The startup currently manages around 45,000 acres—three times the size of Manhattan—and expects to have planted eight million trees by June.
“This is a very important milestone,” said Gabriel Silva, Mombak’s co-founder. “There’s often a gap between project approval and accessing capital, and we’re bridging that.”
BNDES had initially offered Mombak a R$160 million credit line last August, but access to the funds required a financial institution to provide guarantees—now fulfilled through the new agreement.
Mombak has already secured $150 million in carbon removal offtake contracts with companies such as Microsoft, Google, and McLaren. CEO Peter Fernandez said the firm expects to triple or even quadruple that figure within the year.
Despite enthusiasm, access to capital remains a challenge for many in Brazil’s carbon market, with investors often cautious due to perceived risks. However, BNDES director Tereza Campello said the Mombak deal should serve as a precedent.
“This is the role of a development bank. We are taking the initiative,” said Campello. “It shows the market is viable and that belief extends beyond BNDES to other financial institutions.”
Santander’s head of sustainability, Leonardo Fleck, echoed the sentiment: “Capital is flowing, companies are planting, and offtake deals with global firms are being signed. It’s like a puzzle—slowly, the pieces are coming together.”
