Legal Challenge Threatens $180 Million Amazon Carbon Offset Deal
Prosecutors in Brazil seek to annul a $180 million carbon offset plan to conserve the Amazon rainforest in Para. Allegations include insufficient consultation with local communities and legal violations. The scheme involves major corporations like Amazon, under the LEAF Coalition, and faces scrutiny ahead of COP30.
Brazilian prosecutors are challenging a $180 million carbon offset initiative aimed at preserving the Amazon rainforest in the state of Para. The legal action, filed on Tuesday, argues that the state failed to adequately consult with impacted communities and violated national laws regarding the pre-sale of carbon credits. This poses a significant setback to Para's government, host of the forthcoming COP30 climate summit, and the broader carbon credit industry, which is attempting to restore its credibility.
The contentious project drew interest from major corporations and has associations with the LEAF Coalition, founded by Amazon.com Inc. and other international companies and governments. Brazilian officials are under pressure to finalize the initiative before COP30, raising concerns among Indigenous populations and traditional communities regarding the enforcement of carbon credit schemes in the region.
The Para government, alongside non-profit Emergent, which coordinates the LEAF Coalition, has thus far remained silent on the allegations. With plans to protect vast tree stretches by selling up to 12 million carbon credits at $15 each, the jurisdictional project represents one of the most ambitious attempts to reconcile environmental protection with commercial interests.
(With inputs from agencies.)
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