Brazil’s state-controlled oil company Petrobras and the national development bank BNDES have announced a joint initiative to finance forest restoration projects in the Amazon, aiming to bolster the country’s carbon credit market and support environmental recovery efforts.
The new initiative, ProFloresta+, will see Petrobras issue tenders to purchase carbon credits generated from reforestation projects. Selected projects will be eligible for subsidised loans from BNDES to support implementation. The pilot phase is expected to attract investment of approximately 450 million reais (around $78 million), resulting in the replanting of roughly 15,000 hectares of degraded land.
Petrobras plans to award long-term contracts to up to 15 companies as part of a tender scheduled for July. The firm said it aims to use this process to establish a benchmark price for carbon credits linked to restoration activities in Brazil.
“This initiative opens the door for green entrepreneurs to access subsidised finance,” said Petrobras Chief Executive Magda Chambriard. “It will also help set the market standard for restoration-linked carbon credits.”
Carbon credits are tradable instruments that allow holders to emit one metric tonne of carbon dioxide or its equivalent in other greenhouse gases. Petrobras began purchasing such credits in 2023 as part of its effort to offset emissions from its premium fuel, Gasolina Podium.
The scheme forms part of wider national efforts to encourage private sector participation in environmental recovery and climate mitigation, particularly in the ecologically critical Amazon region.
