Zurich, Switzerland – November 2024: In a major investment for climate and community, Trafigura Group Pte Ltd, a leading global commodities trader, and GenZero, an investment platform focused on decarbonization and backed by Singapore’s Temasek, have announced a $100 million USD commitment to significantly expand the Brújula Verde landscape restoration project in Colombia’s Orinoco River Basin. The funding will double the project’s scale, enhancing its carbon removal capacity while supporting local communities and protecting the region’s rich biodiversity.
This sizable investment demonstrates the growing emphasis on nature-based solutions to address climate change, with Brújula Verde expected to produce substantial high-integrity carbon removal credits.
Restoration and Community Benefits
Managed by Inverbosques, the Brújula Verde project aims to restore over 20,000 hectares of degraded land through strategic afforestation and reforestation efforts in one of Colombia’s most biologically diverse areas. The project involves planting over 24 million trees of mixed species to recondition land affected by deforestation, agricultural practices, and wildfires. These efforts are aimed at restoring the ecological health of the Orinoco River Basin without commercial harvesting, preserving Colombia’s natural resources and promoting sustainable land use.
This expanded initiative will also create over 700 direct and indirect jobs, providing vital employment for local communities and investing in infrastructure development. With plans to begin issuing carbon credits by 2025, the project’s economic benefits are expected to extend well beyond direct employment, supporting community initiatives through revenue-sharing models.
Matthew Nelson, Head of Carbon Investments at Trafigura, emphasized the significance of GenZero’s partnership in expanding Brújula Verde. “We are delighted to welcome GenZero to this collaboration. This expansion demonstrates how investment-grade carbon removal assets can enable institutional finance at scale. GenZero’s partnership will enhance the scope and impact of Brújula Verde, bringing local employment alongside environmental and biodiversity benefits to the region, while producing high-integrity nature-based carbon removal credits.”
Leveraging Advanced Technology and Environmental Standards
A notable feature of Brújula Verde is its use of advanced monitoring and verification technologies to ensure environmental integrity. The project has partnered with several experts in carbon and biodiversity monitoring, helping maintain rigorous standards in carbon removal and ecosystem restoration:
- Nature Metrics: Utilizes environmental DNA (eDNA) to monitor biodiversity, assessing species presence and distribution without direct observation.
- Opus Insights: Employs digital monitoring, reporting, and verification (DMRV) to track carbon sequestration performance.
- Ingeobosques: Ensures project compliance with Forest Stewardship Council (FSC) and International Finance Corporation (IFC) standards.
- South Pole: Specializes in Carbon Asset Development, supporting the project in maximizing its carbon removal potential.
These collaborations align Brújula Verde with leading international environmental standards, establishing a model of transparency and accountability. The use of eDNA and DMRV, in particular, enhances the project’s ability to deliver verifiable, high-quality carbon credits by ensuring accurate tracking of biodiversity and carbon performance.
Outlook for Brújula Verde’s Carbon Credits
With 10,000 hectares already planted in 2023-2024, Brújula Verde is on track to plant an additional 10,000 hectares, with the first issuance of carbon credits expected by late 2025. These credits will not only offer a revenue stream for Trafigura and GenZero but will also support local social programs. The project’s direct revenue-sharing model will channel funds back into the community, fostering long-term social and economic development.
Hoon Ling Min, Director of Investments at GenZero, underscored the project’s innovative approach. “The Brújula Verde project marks an important effort in restoring one of Colombia’s most biologically diverse areas. It is a unique project that adopts a restoration bridge concept by reconditioning soil health through reforestation, which enables the reintegration of native species gradually. This, in turn, supports the delivery of high-quality carbon removal credits, essential in broader efforts to build high-integrity carbon markets.”
This approach aims to create a sustainable, high-integrity carbon market where the environmental, economic, and social impacts of carbon removal are interlinked.
Broader Implications for Nature-Based Solutions
Brújula Verde’s expansion signals a wider shift toward responsible investment in nature-based solutions for addressing climate change. With its focus on biodiversity, local community support, and high standards of environmental integrity, the project aligns with global climate goals and demonstrates the potential of private sector investment to drive decarbonization efforts in ecologically sensitive regions.
For Trafigura and GenZero, this expanded partnership represents a step forward in the pursuit of climate action that balances environmental stewardship with economic opportunity. By aligning with high environmental standards and harnessing innovative monitoring technologies, the Brújula Verde project is positioned to become a model of sustainable carbon offsetting.
Conclusion
The expanded Brújula Verde project is a prime example of how strategic investment in nature-based carbon removal can address the dual challenges of climate change and economic development. As the project scales up, it will bring critical environmental and social benefits to the Orinoco River Basin while contributing to Colombia’s carbon reduction goals. With strong support from partners like GenZero and Trafigura, Brújula Verde is set to play an increasingly important role in the emerging global carbon market and the broader movement toward sustainable, high-quality carbon credits.