Around 20% of the Amazon rainforest, one of the world’s largest carbon sinks, has been deforested and degraded. Experts worry the forest is reaching a “tipping point,” after which it will be unable to regenerate itself.
Sao Paulo-based reforestation company Mombak leases and purchases deforested land, restores it by planting native trees, and sells credits based on the carbon removal it achieves. Brazilian development bank BNDES invested 100 million reais ($17.8 million) via its National Fund on Climate Change, or Fundo Clima, launched in 2009.
The Brazilian subsidiary of Spanish banking institution Santander acted as guarantor to enable Mombak to access the credit line. “There is a challenge between getting this approval and actually being able to use the capital,” said Mombak’s Gabriel Silva.
Nature-based
The funding will support the expansion of Mombak’s existing projects on nearly 50,000 acres acquired from nine farms and former cattle ranches in Brazil’s Para state.
Mombak launched its Amazon Reforestation Fund in 2022 to accelerate its large-scale reforestation efforts and generate high-quality carbon credits. The fund hit its $100 million target with support from AXA,Canada Pension Plan, Byers Capital, Union Square Ventures, Bain Capital and Rockefeller Foundation.
The World Bank additionally issued a 9-year $225 million reforestation-linked outcome bond which helped mobilize around $36 million to support Mombak’s initiatives.
The startup has sold its carbon credits to major companies like Google, McLaren and Microsoft, which committed to buying 1.5 million reforestation carbon credits from Mombak by 2030.
