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Bolivia Targets $5 Billion in Carbon Credit Sales to Combat Deforestation

Writer's picture: Laconic GlobalLaconic Global

by ESG News • November 21, 2024



Bolivia’s $5 Billion Carbon Credit Plan

Bolivia is set to sell $5 billion worth of carbon offset credits to tackle rampant deforestation and achieve its goal of halting forest loss by 2030. The plan allows countries and companies to offset emissions by funding projects that reduce climate-warming emissions.

“The intention is to conserve, plant, and reforest. And it’s a way to generate value in this country,” said Bolivian Economy Minister Marcelo Montenegro during a press conference.

Addressing Economic and Environmental Challenges

Bolivia’s economy has been under strain, with nearly depleted foreign reserves and widespread dollar shortages. The country also faces escalating forest fires, with over 10 million hectares burned during this year’s fire season.

“You all know how much we’ve spent in putting out fires, trying to control them, and we should have resources to prevent, mitigate, and get ahead of it,” Montenegro emphasized. “If the intentions to plant, reforest, and mitigate this type of environmental damage are valued, then it’s welcomed.”

Paris Agreement Compliance

The “sovereign carbon credits” will adhere to Article 6 of the Paris Agreement, enabling international buyers to use them for meeting national climate targets. Laconic Infrastructure Partners, overseeing the sale, ensures compliance and emission authenticity through its platform.

Laconic CEO Andrew Gilmour highlighted growing interest in the credits: “At COP29, there are interested parties at the table,” he said, noting first deliveries could begin as early as Q2 2025.

The offsets, totaling around 250 million metric tons, will be issued as securities. Proceeds must fund forest protection, with progress monitored biannually to ensure targets are met. Bolivia will be liable for penalties if commitments are unmet.

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