AXA Invests $49 Million in Brazil Reforestation Projects: A Major Step Towards Carbon Removal

Description: AXA, a leading insurer, is investing $49 million in reforestation projects in Brazil led by local startup Mombak. Discover how this partnership aims to scale up operations and technology while generating carbon credits and combating deforestation.


Introduction: French insurer AXA’s alternative investment vehicle, AXA IM Alts, has announced a $49 million injection into reforestation projects in Brazil. The investment aims to support local startup Mombak in its efforts to restore degraded pasturelands and generate carbon credits. By partnering with Mombak, AXA seeks to contribute to the world’s largest carbon removal initiatives. This article explores the details of the investment and its potential impact on combating deforestation.

Paragraph 1: AXA IM Alts, managing over €185 billion ($208 billion) in assets, will acquire a minority stake in Mombak, leveraging its financial resources and expertise to help scale up the startup’s operations and technological advancements. Through this partnership, Mombak plans to reforest more than 10,000 hectares of degraded pastureland, ultimately generating up to 6 million carbon credits.

Paragraph 2: In an interview, Mombak co-founder Peter Fernandez expressed the ambition to create the largest carbon removal projects globally. With Brazil offering significant reforestation opportunities, Mombak aims to address the destruction of the world’s largest rainforest. By purchasing degraded land from farmers and ranchers or collaborating with them, Mombak replants native species, adopting a business model that generates CO2 removal credits for sale in carbon markets. This approach also helps mitigate risks faced by non-governmental organizations involved in Amazon reforestation.

Paragraph 3: While carbon offset markets have faced criticism from organizations like Greenpeace for enabling continued greenhouse gas emissions, reforesting the Amazon remains a promising strategy against climate change. However, non-profits engaged in reforestation efforts encounter challenges such as illegal land-grabbing and limited budgets. Mombak’s land purchase model, supported by AXA IM Alts, ensures quality procedures, and guarantees the long-term permanency of the newly created forest.

Paragraph 4: Adam Gibbon, AXA IM Alts’ natural capital lead, emphasized the need for substantial capital to execute Mombak’s land purchase model successfully. This investment marks AXA’s entry into Brazil and demonstrates its commitment to scaling up reforestation efforts in Brazil and other countries within the Amazon basin. With a focus on sustainable deployment, AXA aims to make a significant positive impact on the region’s environmental preservation.

Conclusion: AXA’s $49 million investment in reforestation projects led by Mombak signals a significant step towards combating deforestation and climate change in Brazil. By supporting the creation of carbon removal projects and partnering with local initiatives, AXA demonstrates its commitment to sustainable environmental practices. The collaboration between AXA and Mombak not only addresses the challenges faced by reforestation non-profits but also paves the way for a greener future.

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