Brazil's Bndes development bank will finance R80mn ($14.14mn) for Brazilian reforestation startup re.green to recover degraded areas in the Amazon rainforest and the Atlantic forest.
The investment will fund re.green's deal with Microsoft, aimed at generating carbon offsets in both biomes, Bndes said.
The resources come from the Climate Fund, which is linked to the environment ministry and is managed by Bndes.
The project includes areas in Brazil's Restoration Arc initiative, which focuses on recovering degraded territories in the Amazon rainforest's most damaged areas. The Restoration Arc plans to restore 6mn hectares of native flora in the Amazon, as well as recover 1.65bn metric tonnes of CO² from the atmosphere by 2030. But it requires investments of $10bn (R56.5bn), Bndes said.
The Climate Fund was created in 2009 with some of its funds comingfrom oil and natural gas exploration to mitigate and combat climate change. It currently holds around R11bn, according to Bndes.
Reforestation is one of Brazil's flagship themes for the UN Cop 30 summit, which it will host in northern Para state in November.
