Catenaa, Monday, August 11, 2025- Standard Chartered has signed a deal to exclusively sell jurisdictional forest carbon credits from Brazil’s Acre state over the next five years, aiming to generate up to 5 million credits in 2026 worth as much as $150 million.
The agreement marks one of the first collaborations between a major global bank and a sub-national government to support Amazon rainforest conservation. The bank said 72% of net funds from credit sales will go to local and indigenous communities, which have been engaged in a consultation process since May.
Standard Chartered’s move comes amid heightened scrutiny of the carbon market, following legal challenges in Brazil’s Para state to a $180 million offset scheme. The bank said Acre’s project is not a forward sale and credits will only be sold once issued, avoiding risks tied to pre-sold contracts.
Jurisdictional forest credits are issued under state-level programs to reduce emissions from deforestation, aiming to improve credibility by reducing the risk of overstated carbon savings. Standard Chartered’s head of carbon markets development, Chris Leeds, said the bank is working to ensure credits represent genuine carbon reductions.
Acre joins other Brazilian states, including Piauí, in signing agreements to protect large forest areas in exchange for investment. The deal could bolster trust in a sector often criticized for difficulties in verifying avoided deforestation.
