The Brazilian National Bank for Economic and Social Development (BNDES) and the Brazilian national oil company Petrobras signed a cooperation agreement on March 31 to establish the ProFloresta+ project, aimed at promoting the restoration of vegetation in the Amazon forest region and advancing the development of the carbon market.

According to Zhongjin's understanding, this collaboration is intended to restore up to 50,000 hectares of degraded forest areas through reforestation, with an expected absorption of around 15 million tons of carbon, thereby addressing climate change.

The ProFloresta+ project is one of Brazil's largest carbon credit procurement projects and will receive support from financial institutions like BNDES to enhance contract prices and technical parameters' transparency in the carbon market through unified standards.

Aloizio Mercadante, the President of BNDES, stated, "We will change the way forests are restored and maintained, benefiting businesses, local communities, and the surrounding environment, while meeting the country's needs in addressing climate change."

In the initial phase of the project, the two parties plan to sign contracts for up to 5 million carbon credits for 15,000 hectares of forest, with investments exceeding 450 million Brazilian reais, creating 4,500 job opportunities.

A report released by BNDES indicates that with the technical support of the Natural Investment Lab (NIL), the project is expected to drive the development of Brazil's ecological restoration market and contribute to the protection of the Amazon rainforest. The project has received cooperation from consulting companies such as Agroícone, non-governmental organizations like Imaflora, and law firms like Mattos Filho.

Additionally, the project will encourage Brazilian companies to integrate decarbonization policies with commitments to sustainable development and environmental protection.