Standard Chartered signs five year carbon credit agreement with Brazilian state

Editorial

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Standard Chartered has announced an agreement to sell up to five million high-integrity forest protection carbon credits in partnership with the Brazilian State of Acre. This marks one of the first collaborations between a major global bank and a sub-national government to support large-scale forest conservation.

The credits, expected to enter the market in 2026, will be issued under the Architecture for REDD+ Transactions (ART) registry using the TREES methodology. This has been approved by the Integrity Council for the Voluntary Carbon Market (ICVCM). These carbon credits differ from traditional project-based credits by covering entire regions and being directly overseen by government authorities.

The initiative is designed to deliver measurable economic and environmental outcomes. According to the State of Acre’s benefit-sharing strategy, 72% of net proceeds will go directly to indigenous and local communities, funding sustainable agriculture, reforestation, and eco-tourism.

In addition to this, 28% will support project governance, including forest monitoring, emergency response, and adherence to the TREES standard. This structure aims to create financial incentives for forest preservation while ensuring that the majority of economic benefits flow to those living in and protecting the Amazon rainforest.

Standard Chartered will act as the exclusive seller of the credits, leveraging its global network and carbon market expertise to bring the credits to buyers seeking high-integrity offsets. To enhance market confidence, the Acre programme is undergoing an independent assessment by carbon data provider Sylvera, the first evaluation of a Brazilian jurisdiction under the ART-TREES standard.

Marisa Drew, chief sustainability officer, Standard Chartered, says: “Without deploying new market mechanisms, standing forests are unlikely to be protected because the short-term economic incentive for deforestation nearly always outweighs the perceived value of these long-term natural assets in situ. We’re leveraging our global network and carbon market expertise to address this challenge directly, offering a means to help preserve standing forests that act as vital carbon sinks, and in turn help the communities that depend on them continue to realise the economic and social returns they provide.”

Mr. Amarisio Freitas, Secretary of the Treasury of the State of Acre, speaker and leader of the State’s Jurisdictional Carbon Project, adds: “This arrangement will bring economic and social benefits to the people of Acre, while protecting our natural resources and supporting the traditional communities and indigenous peoples of our state. The government has fought for a fair society by providing solutions for all its inhabitants, creating development mechanisms in the regions furthest from the capital without negatively impacting the ecosystem. This arrangement provides us an effective tool in the fight for sustainable economic development. We are excited to work with Standard Chartered on this groundbreaking innovation.”

Germana Cruz, CEO and head of financial institutions, LATAM, Standard Chartered, concludes: “As the world looks toward COP30, the State of Acre is stepping forward with bold leadership on carbon markets – combining environmental ambition with economic opportunity. Standard Chartered is proud to support this vision by bringing our global expertise in sustainable finance to help build credible, scalable carbon market solutions for our markets.”