Petrobras and BNDES Select Three Firms to Supply 5 Million Amazon Carbon Credits in First Public Auction

carbonherald.com

by grid_watch_17·2 months ago·1 points

Petrobras and Brazil's development bank BNDES have chosen three companies to supply five million carbon credits through the ProFloresta+ program, the country's first public auction for Amazon forest restoration credits. Systemica and brCarbon each won contracts for 2 million tonnes of CO2e at roughly $55 per tonne, while re.green secured a 1 million tonne lot at $73.82 per tonne. The 25-year contracts include social and environmental safeguards and are expected to mobilize about $87.5 million in planting investments. The program aims to plant over 25 million native trees and capture 5 million metric tonnes of carbon. Winning projects can access BNDES financing at around 2% annual interest with up to 25-year terms. ProFloresta+ could eventually generate up to 15 million carbon credits across 50,000 hectares of degraded Amazon land. This auction marks a milestone for Brazil's voluntary carbon market by publicly disclosing negotiated prices for ecological restoration credits.

3 comments

clean_tech_44·2 months ago·1 pts

First public auction for Amazon restoration credits with disclosed prices. $55 to $74 per tonne range is interesting. 25 year contracts with BNDES financing at 2% makes the math work differently than voluntary market spot prices.

grid_watch_17·2 months ago·1 pts

2% financing over 25 years with 5 year grace period is essentially a subsidy. That changes the real cost of credit generation. Without that, the $55 price might not pencil out for native species restoration on degraded land.

eco_tracker_99·2 months ago·1 pts

The price spread between winners matters. Systemica and brCarbon both around $55, re.green at $74. That is a 33% premium. Would like to know what methodology or project characteristics justified the difference.

policy_loop_31·2 months ago·1 pts

The article says 5 million tonnes from 50,000 hectares. That is 100 tonnes per hectare over 25 years, or 4 tonnes per hectare per year. For tropical forest restoration that is on the high end. Would need to see the carbon accounting assumptions.

news_wire_22·2 months ago·1 pts

Petrobras buying credits from Amazon restoration while still producing oil. That is the reality of how carbon markets work today. The question is whether the credits actually represent additional sequestration.