admin
Amazon and other companies have agreed to buy carbon offset credits that will support the conservation of its namesake rainforest in the Brazilian state of Para, in a deal valued at around US$180 million.
The online store and at least five other firms will make the purchase through the LEAF Coalition forest conservation initiative, which it helped to found in 2021 with a group of companies and governments including the United States and United Kingdom.
The agreement is LEAF’s first deal in the Amazon, the world’s largest rainforest, which is vital to curbing climate change because of the enormous amount of greenhouse gas its trees absorb. The Para state government and the LEAF Coalition first shared details of the deal exclusively with Reuters.
Para Governor Helder Barbalho was set to announce the agreement yesterday evening during New York Climate Week, when about 900 events will be held alongside the UN General Assembly.
“Clearly it sends an important message: A company with a name referencing Amazon making its first purchase with a state in the Amazon,” Barbalho told Reuters.
Amazon confirmed the purchase in a statement, emphasising the importance of tropical forest preservation in addressing climate change. While demand for carbon credits globally has stalled, tech giants Microsoft, Meta and Google have all made purchases of offsets in Brazil this year.
Amazon, drug and chemical maker Bayer, consultancies BCG and Capgemini, clothing retailer H&M and Walmart will collectively buy 5 million credits at US$15 per credit.
That is far above the average last week of US$4,49 for carbon credits linked to nature, according to data provider Allied Offsets.
Each credit represents a reduction of 1 metric ton of carbon emissions from reducing deforestation in Pará state in the years 2023 to 2026. — Reuters.
Bongani Ndlovu
Online Reporter