Standard Chartered Steps Up with Amazon Rainforest Carbon Credits

Standard Chartered is set to sell carbon credits to protect the Amazon, partnering with Brazil's Acre state. This initiative aims to legitimize the carbon credit market by supporting forest conservation. The project promises significant earnings, with local communities set to receive major benefits.

Standard Chartered has entered into an agreement to sell millions of carbon credits aimed at protecting the Amazon rainforest, representing the Brazilian state of Acre. This move is part of the bank's bid to grow its carbon credits portfolio and bolster trust in this emerging market, according to a senior banker.

The exclusive sale of forest carbon credits by Standard Chartered over a five-year period marks one of the first collaborations between a major international bank and a sub-national government to support forest conservation. The bank's involvement is anticipated to lend credibility to a market previously marred by controversies, such as the annulled $180 million carbon offset scheme in Para state.

The project, expected to produce up to 5 million credits by 2026, aims to generate up to $150 million. It has faced challenges related to proving the environmental benefits of avoided deforestation. Importantly, 72% of net funds will benefit local and indigenous communities, involving them in a consultative process initiated in May 2025.

(With inputs from agencies.)