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"Green shoots" in the Amazon: A pathway for forests and the carbon market

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  • Sta. Romana, Leonardo L.

Abstract

The voluntary carbon market, used by companies to buy credits to "offset" part of their remaining emissions, has recently faced integrity issues due to inaccurate, sometimes even fraudulent, claims of emissions avoidance from projects preventing deforestation. Several recent "best practices" in the Amazon are noteworthy in terms of rebuilding trust in the market for offsets based on the carbon-absorbing abilities of nature itself. On the supply side, a developer and two Brazilian start-ups focused on forest restoration projects are presented. On the demand side, the big US tech firms and global corporates buying the carbon credits are discussed. Their willingness to pay a premium price for the high-quality carbon offsets are noted. An innovative World Bank Amazon-inspired financial instrument used to mobilize private institutional capital is also explained.

Suggested Citation

  • Sta. Romana, Leonardo L., 2026. ""Green shoots" in the Amazon: A pathway for forests and the carbon market," EconStor Preprints 341033, ZBW - Leibniz Information Centre for Economics.
  • Handle: RePEc:zbw:esprep:341033
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