Forty percent of deforestation in the Brazilian Amazon takes place in the state of Pará. Through a new agreement, global companies, in partnership with Norway, the United Kingdom, and the United States, will pay Pará for reducing carbon emissions from deforestation. The goal is to preserve more of the rainforest.
Photo: Martine Røiseland/KLD
Pará’s rainforest has been under significant pressure over the last decades. An area the size of Cambodia has already been deforested. Trees are cut down and burned to create more land for agricultural production, primarily beef farming.
Norway, the United Kingdom, and the United States, along with several major international companies like Amazon, H&M, and BCG, have now entered into a agreement with the Brazilian state.
“We have seen a welcome increase in support for rainforest preservation, but we are entirely dependent on private financing to achieve the goals of forested nations. That is why Norway has worked diligently to facilitate these types of agreements where companies pay forested countries for reducing deforestation,” said Norway’s Minister of Climate and Environment, Tore O. Sandvik.
Up to $180 Million
The agreement, announced today during New York Climate Week, means that the state will receive up to $180 million if it reduces emissions from deforestation by 12 million tons of CO2.
“Deforestation accounts for around ten percent of global greenhouse gas emissions, more than all the world’s cars. Preserving the rainforest is one of the most important international climate and environmental measures we can take. That is why I am pleased that we now have a new agreement to reduce deforestation in the Amazon,” said Sandvik.
The funds will come from the LEAF Coalition, established in 2021 (see fact box).
Cooperating with Norway
Norway has supported Pará’s efforts to reduce and measure deforestation, and to consult with Indigenous peoples and local communities.
Over the past two years, deforestation has been reduced by 35 percent.
“We are impressed by the state’s political will to combat deforestation. We have supported Pará’s work in recent years to prepare for receiving carbon payments, which can be used for sustainable development in this part of the Amazon,” said Sandvik.
The revenue from the LEAF-agreement will be invested in programs that benefit Indigenous peoples and local communities, as well as in government initiatives to further reduce emissions from deforestation.
Facts about the LEAF Coalition
- The coalition was established in 2021 and consists of governments and major international companies such as Amazon, H&M Group, and Unilever.
- Norway is one of the founders of the initiative, along with the U.S. and the UK. The coalition mobilizes voluntary payments from both governments and the private sector for verified reductions in carbon emissions. The carbon credits are certified by the independent ART/TREES-standard.
- The companies in the LEAF Coalition do this voluntarily, in addition to reducing their own emissions.
- How the Agreement Works: Norway provides a financial guarantee that the state will be paid a for its reduced deforestation at an agreed price. If new companies wish to pay a higher price, Norway will exit the agreement and free up funds to guarantee other agreements through the LEAF Coalition.