Standard Chartered Signs Agreement to Sell Jurisdictional Forest Credits in Brazil

Standard Chartered has entered into a landmark agreement to sell millions of carbon credits linked to the preservation of the Amazon rainforest, representing the Brazilian state of Acre. This move aligns with the bank’s ambition to expand its carbon credit portfolio while strengthening credibility in a market still in its formative stages.

Pioneering Collaboration with a Sub-National Government

The agreement grants Standard Chartered exclusive rights to market Acre’s forest carbon credits for a five-year period. It marks one of the first instances where a major global bank has partnered directly with a sub-national authority to promote forest conservation. Such cooperation is being closely watched as a potential model for similar international climate initiatives.

Restoring Confidence in a Troubled Sector

The bank’s involvement comes at a time when confidence in the carbon offset sector has been tested. Recent developments, such as legal challenges in Brazil’s Pará state over a $180 million offset deal, have raised questions about contract structures, community rights, and the transparency of benefits. By lending its institutional weight, Standard Chartered may help rebuild trust and encourage broader participation.

Scale and Economic Potential of the Acre Project

Projections for the Acre initiative suggest the generation of up to five million carbon credits in 2026, potentially valued at $150 million. This scale places the project among the most commercially significant in the emerging jurisdictional credit space, offering both environmental and financial incentives.

Addressing Scrutiny over Avoided Deforestation Claims

Forest carbon credit schemes that claim to prevent deforestation have long faced skepticism, particularly over how emissions savings are calculated. Jurisdictional credits, produced under state or national frameworks, are designed to mitigate these concerns by employing more comprehensive monitoring and reducing the likelihood of inflated carbon reduction claims.

Community-Centric Benefit Sharing

A defining feature of the Acre initiative is its revenue-sharing model. Seventy-two% of the net proceeds retained by the state will be allocated to local and indigenous communities. These groups have been actively engaged in a formal consultation process, the main phase of which commenced in May 2025, ensuring their voices are integrated into project planning and execution.