Prosecutors in Brazil have filed a lawsuit to annul a $180 million carbon offset agreement signed by the state of Para, citing legal and ethical violations in the high-profile rainforest conservation initiative backed by major global firms.
Brazilian federal prosecutors are seeking to cancel a $180 million carbon offset agreement designed to protect the Amazon rainforest, arguing the deal violates national laws and overlooks the rights of local communities. The lawsuit, filed Tuesday, challenges a landmark contract signed last year between the state of Para and the LEAF Coalition - an initiative supported by major corporations and governments.
The complaint represents a significant setback for both the Para state government, which is set to host the COP30 climate summit, and the global carbon credit market, which has struggled with credibility issues over transparency, fraud, and community engagement.
In their filing, prosecutors claim Para’s government failed to properly consult Indigenous and traditional communities who would be affected by the project. They also argue that Brazilian law does not permit the pre-sale of carbon credits - particularly those linked to future conservation efforts rather than measurable past reductions.
Prosecutors allege the state rushed to greenlight the project ahead of COP30, intensifying pressure on vulnerable communities.
The contract in question involves the LEAF Coalition, a forest conservation initiative co-founded in 2021 by Amazon.com Inc., along with other private companies and governments. The project aimed to sell up to 12 million carbon credits at $15 each, tied to the preservation of the Amazon’s carbon-rich trees.
Furthermore, the agreement was among the first jurisdictional carbon credit deals - targeting emissions reductions at a state-wide level instead of through fragmented private projects. The model was intended to streamline oversight and restore market confidence, but critics have warned it may replicate existing issues on a larger scale.
Read next
02:20
A U.S. appeals panel has rejected Apple’s request to pause a ruling that restricts the tech giant from charging commissions on in-app purchases made outside its payment system—delivering a major blow to the company in its long-running legal fight with Epic Games.
02:12
President Donald Trump has signed a proclamation reinstating a travel ban that restricts entry to the United States for citizens of 12 countries, citing national security threats and inadequate vetting processes.
01:40
In a historic move, President Donald Trump’s administration has imposed sanctions on four judges from the International Criminal Court (ICC), citing their involvement in cases targeting U.S. troops in Afghanistan and Israeli officials over alleged war crimes.
00:50
Albania’s Parliament has approved a bilateral agreement to enhance security cooperation and provide long-term support to Ukraine, marking a new phase in Tirana’s alignment with Kyiv amid ongoing regional instability.
00:18
Trump
In a sweeping new proclamation issued late Wednesday night, President Donald Trump has announced an immediate ban on the enrollment of new Chinese and other foreign students at Harvard University.
What is your opinion on this topic?
Leave the first comment