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Scandal bares the problems of the Amazon carbon credit market

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By illuminem briefings

· 2 min read

illuminem summarizes for you the essential news of the day. Read the full piece on Financial Times or enjoy below

🗞️ Driving the news: Prosecutors have filed lawsuits against three carbon credit projects in the Amazonian state of Pará, alleging that the companies behind them seized public land in a bid to generate carbon credits and profits
• A further investigation into the matter revealed that these projects had already been verified by the key standard-setting body Verra and sold off to companies in the West

🔭 The context: The Brazilian section of the Amazon, spanning over 400 million hectares, is a significant source for generating carbon credits, which are often acquired by global firms
• However, the emergence of such reports underscores the failure of current due diligence methods to prevent aggressive behavior toward local communities in the establishment of carbon credit projects

🌍 Why it matters for the planet: Although the Amazon rainforest's carbon credit market can substantially aid in climate change mitigation, it clearly faces considerable challenges
• To harness the Amazon’s vast potential in the fight against climate change while maintaining the integrity of the carbon market, addressing these challenges will be crucial

⏭️ What's next: Brazil's Congress is deliberating the creation of a mandatory carbon market's legal structure, which could establish norms influencing the voluntary market
• Given the intricate nature of carbon credit projects in the Amazon, expertise and rigorous due diligence are paramount

💬 One quote: “Carbon credit projects are not for well-intentioned organisations that don’t have a good level of expertise. It’s complicated territory. It’s not for amateurs,” (Pedro Brancalion, professor at the University of São Paulo)

📈 One stat: A recent analysis by Hernandez Lerner & Miranda Advocacia found that out of 56 Amazonian carbon credit projects, 33 overlapped with public lands, either partially or entirely

Click for more news covering the latest on carbon

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