Amazon revival: Brazil backs major forest restoration and carbon offset push

A major environmental initiative is underway in Brazil, as Petrobras and the country’s National Development Bank (BNDES) team up to launch ProFloresta+, a reforestation and carbon credit programme set to revitalise 50,000 hectares of degraded Amazon land.

Tree planting initiative in the Amazon rainforest. AI generated picture.

With an investment totalling $77 million (R$450 million), the project aims to remove 15 million tonnes of CO₂, a figure equivalent to the yearly emissions of almost 9 million petrol-powered vehicles. In addition to its environmental impact, ProFloresta+ is expected to create around 4,500 new jobs, offering a dual boost to both the environment and the local economy.

The project stands out as Brazil’s first large-scale forest restoration initiative with transparent carbon credit pricing and publicly accessible contracts. In its initial rollout, Petrobras plans to purchase 5 million carbon credits, supporting the recovery of 15,000 hectares of forest.

‘This initiative allows Petrobras to meet its climate commitments while stimulating Brazil’s restoration sector with high-quality carbon credits,’ said Magda Chambriard, CEO of Petrobras.

BNDES will offer dedicated funding to developers through financing tools such as the Climate Fund, ensuring the programme’s long-term sustainability. Technical expertise and integrity standards have been shaped with input from nonprofit partners including the Nature Investment Lab (NIL) and the Climate and Society Institute (ICS).

‘ProFloresta+ establishes a new standard for carbon credit transactions,’ said Maurício Tolmasquim, Petrobras Director of Energy Transition and Sustainability. ‘This standard contract for high-integrity restoration carbon credits will serve as a reference to expand Brazil’s restoration and carbon credit market.’

Aloizio Mercadante, President of BNDES, highlighted the programme’s alignment with national decarbonisation strategies, while Tereza Campello, BNDES Socio-Environmental Director, spoke of its wider vision: transforming the region known as the Arc of Deforestation into an ‘Arc of Restoration.’

As global demand for credible carbon credits grows, Brazil is positioning itself as a leader in scalable, nature-based solutions—combining economic growth with ecosystem renewal.