Standard Chartered invests $150M in Amazon carbon credits to transform climate finance

A Major Step in the Fight Against Climate Change

Standard Chartered has taken a bold step in the global fight against climate change by signing an exclusive agreement with the Brazilian state of Acre. This partnership involves the sale of millions of carbon credits over the next five years, aimed at protecting the Amazon rainforest—a critical natural resource for the planet.

This collaboration is significant as it represents one of the few partnerships between a major global bank and a regional government. It could help restore confidence in carbon markets, which have faced increasing skepticism in recent years due to concerns about their effectiveness and transparency.

Protecting the Amazon Rainforest Through Carbon Credits

Under the new agreement, Standard Chartered will be the sole seller of forest carbon credits generated by conservation projects in Acre. These credits are part of what are known as jurisdictional carbon projects, which cover an entire state-level area. This approach makes it more difficult to manipulate or exaggerate the environmental impact of these projects.

The deal is expected to generate up to 5 million verified carbon credits in 2026, potentially worth $150 million. These funds will support environmental protection and community development initiatives. Importantly, this is not a forward sale; Standard Chartered has emphasized that there is no commitment to sell the credits in advance. The credits will only be sold after they are officially verified, adding an extra layer of transparency to the process.

A Focus on Fairness and Community Involvement

One of the standout features of this deal is its focus on benefiting the local and indigenous communities who live closest to the Amazon. The state of Acre has pledged that 72% of the net funds from the sale of these credits will go directly to these communities. These groups have long played a vital role in preserving the rainforest, and now they will also benefit financially from the efforts.

To ensure that the voices of these communities are heard, Acre initiated a major consultation process in May 2025. This involved direct conversations with local stakeholders, including traditional forest dwellers and indigenous leaders. This effort demonstrates a commitment to inclusion, something that past projects in other regions have often failed to achieve.

Because these are jurisdictional credits, they are less likely to make exaggerated claims about their carbon savings. Unlike smaller, isolated projects, the Acre program covers a broader area and is managed by the state itself, ensuring greater accountability and accuracy.

A New Standard for the Carbon Market

This move comes at a time when the carbon credit market is under intense scrutiny. Carbon credits are meant to represent real reductions in emissions—each credit equates to one tonne of carbon dioxide not released into the atmosphere. However, many past projects have been criticized for not delivering the promised environmental benefits.

By partnering with a regional government and maintaining a transparent process, Standard Chartered is aiming to set a new benchmark for high-quality carbon credits. The bank emphasizes that it is committed to offering credits that make a meaningful difference in the environment.

Other Brazilian states are also entering the carbon credit space. For example, the state of Piauí recently signed an agreement to protect large forest areas in exchange for investment. However, the deal with Acre stands out due to its structure, scale, and the deep involvement of local communities.

The Future of Carbon Markets

With millions of dollars at stake and global attention focused on rainforest protection, this project may influence how future carbon deals are structured. It highlights the importance of transparency, community involvement, and credible environmental impact assessments.

As the world continues to seek solutions to combat climate change, partnerships like this one between Standard Chartered and Acre offer a promising model for sustainable and equitable environmental initiatives.