Brazil institutions to boost investment in forests

At COP26, Petrobras announced the expansion of approximately $9.1 million in investment for projects aimed at the forest restoration of native species across Brazil’s biomes. The goal of the initiative, unveiled Wednesday (Nov. 10), is to contribute to carbon sequestration and to curb greenhouse effect gas emissions.

The announcement comes as part of program Living Forest—”Floresta Viva” in the original Portuguese—launched by the country’s National Economic and Social Development Bank, BNDES, during the forum on the strengthening of the forest agenda, in Glasgow.

The program will be based on the combination of BNDES resources with those from other companies. The Petrobras–BNDES partnership will add up to an investment of $8.3 million over the course of five years, for reforestation projects through public procurement and shared management.

To execute the plan, a managing partner will be selected and be charged with the tender offer as well as project monitoring. The first offer should be launched in the first half of 2022.

The participation of Petrobras in the initiative aims to expand socio-environmental investment from company Natural Climate Solutions, with a focus on forest restoration. The tender offers will include social and environmental requirements for the selections of projects, which must be in line with international certification standards for a potential carbon certificate.

According to Bruno Aranha, BNDES director for Productive and Socio-Environmental Credit, Living Forest should help boost the sector of ecological restoration as well as Brazilian companies working in a fair transition to a carbon-neutral economy.

“Under the initiative, the expect to reforest 16 thousand to 33 thousand hectares with native species, with the possibility of capturing some 9 million tons of CO² equivalent while projects are in progress,” Aranha stated.

The initiative is to be coupled with investments Petrobras has made since 2008 in voluntary projects for climate under the Petrobras Socio-Environmental Program.

As it stands today, Petrobras offers support to 17 projects being carried out in the Amazon, Atlantic Forest, and Caatinga biomes, adding up to $11.5 million in investments for the coming three years. In addition, it should incorporate another four project from a public selection conducted in 2021, active in swamps and water basins that play a strategic role in the company’s operations.