Brazil’s largest carbon credit deal is under fire as federal prosecutors move to annul a $180 million agreement, citing violations of national law and the rights of traditional communities in the Amazon.
In short:
- The state of Pará signed a deal to sell 12 million carbon credits to companies like Amazon and Walmart, but prosecutors say the credits were presold illegally under Brazil’s 2024 carbon market law.
- Indigenous and Quilombola communities claim they were not properly consulted, as required under international law, and fear the program could limit access to their land and disrupt their traditional ways of life.
- The deal’s future is now uncertain, with lawsuits seeking damages and contract cancellation, just as Pará prepares to host the COP30 climate summit.
Key quote:
“The contract should have undergone prior consultation, as the vast majority of carbon credits will come from traditional territories.”
— Felipe de Moura Palha e Silva, head of the Public Prosecutors’ Office in Pará
Why this matters:
Carbon credit markets are designed to fund conservation by assigning value to standing forests, but in practice they often clash with the rights and needs of the people who live in those forests. In Brazil’s Amazon, where deforestation remains high and many Indigenous lands lack official recognition, carbon deals can quickly become flashpoints. Critics argue that these agreements may privatize communal lands under the guise of environmental protection, while offering few guarantees to the communities involved. As global companies lean on carbon offsets to meet climate targets, questions about who controls these credits — and at what cost — are becoming more urgent. Without full transparency and consent, these markets simply repeat patterns of environmental injustice.
Learn more: Brazil moves to auction vast oil blocks despite climate and Indigenous concerns
