Standard Chartered Bank has signed a groundbreaking five-year agreement with the Brazilian state of Acre to sell up to five million carbon credits, a move projected to raise as much as $150 million for rainforest conservation.

The credits will be generated within the United Nations-backed REDD+ framework, which focuses on reducing emissions from deforestation and forest degradation.

Set to begin issuing in 2026, the credits fall under the “avoided deforestation” category—preserving existing forests rather than planting new ones. This approach aims to safeguard biodiversity, prevent greenhouse gas emissions, and protect the livelihoods of communities living within and around the Amazon rainforest.

How the Deal Works

Under the agreement, Standard Chartered will leverage its global network and expertise in carbon markets to sell verified credits to buyers seeking to offset their emissions. Acre officials have pledged that 72% of the proceeds will be directed toward local and Indigenous communities. These funds will support forest protection, sustainable livelihoods, and community-led conservation initiatives.

The remaining 28% will be invested in project management and monitoring systems to ensure transparency, compliance, and measurable results. Safeguards are built into the deal to guarantee that credits are sold only once they are issued and verified—addressing one of the biggest credibility challenges in the carbon offset market.

“We’re leveraging our global network and carbon market expertise to address this challenge directly, offering a means to help preserve standing forests that act as vital carbon sinks, and in turn help the communities that depend on them continue to realise the economic and social returns they provide,” said Marisa Drew, Chief Sustainability Officer at Standard Chartered.

Why the Amazon Matters

The Amazon rainforest is one of the planet’s most important carbon sinks, absorbing approximately 2.2 billion metric tons of CO₂ each year, according to a NASA-led study. This natural process plays a crucial role in stabilizing the Earth’s climate. However, deforestation and forest degradation account for roughly 20% of global land-use emissions.

Protecting the Amazon is considered one of the fastest and most cost-effective ways to combat climate change. In addition to absorbing carbon, the rainforest is home to millions of species and countless Indigenous communities whose cultural and economic survival depends on a healthy ecosystem.

The carbon offset market has faced scrutiny in recent years, with some projects accused of overstating environmental benefits or failing to deliver tangible results. To address these concerns, the Standard Chartered–Acre partnership adheres to the Core Carbon Principles (CCPs) developed by the Integrity Council for the Voluntary Carbon Market (ICVCM).

These principles emphasize permanence, additionality, leakage prevention, and robust monitoring, reporting, and verification (MRV) systems. The project’s “no forward selling” policy further enhances trust by ensuring buyers only purchase credits that have been fully verified and issued.

By embedding these safeguards, the deal seeks to set a new benchmark for quality and accountability in voluntary carbon markets.

A Broader Climate Strategy

This agreement forms part of Standard Chartered’s wider commitment to sustainable finance and its goal of reaching net-zero operations by 2025, with a 2050 target for financed emissions. The bank has been investing in innovative climate solutions, including early-stage carbon removal technologies such as enhanced rock weathering through its partnership with UNDO.

It also works with Puro.earth, a leading carbon removal registry, to provide clients with access to high-quality Carbon Dioxide Removal Certificates (CORCs). These measures reflect a shift among global financial institutions toward integrating environmental stewardship into core business strategies.

By combining climate science, financial innovation, and community development, the Standard Chartered–Acre deal offers a model for how public–private partnerships can tackle global challenges. The initiative promises measurable environmental gains while empowering local populations with the resources needed to maintain and protect their land.

If successful, the $150 million effort will not only help reduce global emissions but also demonstrate how integrity-driven carbon markets can play a vital role in the global push toward a low-carbon future.