Wedoany.com Report-Jun 4, Brazilian prosecutors have filed a lawsuit on June 3, 2025, to cancel a $180 million carbon offset initiative aimed at preserving the Amazon rainforest in Pará state. The agreement, signed in 2024, involves the state of Pará and a group of international companies and governments through the LEAF Coalition, a forest conservation effort established in 2021.

A drone view shows a deforested plot of Brazil's Amazon rainforest in the municipality of Humaita, Amazonas state, Brazil, August 7, 2024.

The legal challenge targets the state’s plan to sell carbon credits, which represent carbon stored in trees protected from deforestation. Prosecutors claim the Pará government did not adequately consult local communities, including Indigenous and traditional groups, before finalizing the deal. They also argue that Brazilian law prohibits the pre-sale of carbon credits, raising concerns about the project’s compliance with national regulations.

Pará, set to host the COP30 climate summit in Belém in November 2025, manages a significant portion of the Amazon, a critical global rainforest. The carbon offset project, described as jurisdictional for covering an entire state, aimed to sell up to 12 million credits at $15 each. This approach was intended to improve transparency in carbon credit accounting compared to smaller, private projects.

The lawsuit poses challenges for Pará’s government and the carbon credit sector, which has faced scrutiny over past issues. Companies involved, including Amazon.com Inc. and at least five others, agreed to purchase credits through the LEAF Coalition, co-founded by Amazon with support from nations like the United States and United Kingdom. Neither the Pará government nor Emergent, the nonprofit coordinating the LEAF Coalition, has responded to requests for comment.

Prosecutors noted: “The state aimed to approve its carbon credit plan before COP30, which has generated considerable pressure on Indigenous peoples and traditional communities in Pará.” The outcome of this legal action could impact preparations for the upcoming climate summit and the broader effort to conserve the Amazon through carbon offset initiatives.

Brazilian Prosecutors Seek to Block $180 Million Carbon Credit Deal