Amazon leads companies in $180m deal to conserve rainforest

Amazon and other companies are buying carbon offset credits to support the conservation of the Amazon rainforest in Brazil. The deal is worth around $180 million and is part of the LEAF Coalition forest conservation initiative.

The deal is a significant step towards combating climate change, as the Amazon rainforest plays a crucial role in absorbing greenhouse gases. The Pará state government and the LEAF Coalition first unveiled details of the deal exclusively to Reuters.

Amazon’s decision to purchase carbon credits in its namesake region sends a powerful message about the importance of tropical forest preservation in addressing climate change.

Other tech giants, including Microsoft, Meta, and Google, have also made similar purchases in Brazil this year.

The coalition of companies involved in the deal includes Amazon, Bayer, BCG, Capgemini, H&M, and Walmart. Together, they will purchase 5 million credits at a price of $15 per credit, significantly higher than the average price of $4.49 for nature-based carbon credits.

Each credit represents a reduction of 1 metric ton of carbon emissions from deforestation in Pará state during the years 2023 to 2026. An additional 7 million credits will be made available for purchase by other companies.

Attribution: Reuters

Subediting: Y.Yasser