• Up to 5 million high-integrity jurisdictional forest carbon credits to be brought to market in 2026 under a five-year agreement between Standard Chartered and the Brazilian State of Acre.
• 72% of net proceeds from credit sales will directly benefit local and indigenous communities through sustainable development initiatives.
• Initiative sets a precedent for scalable, jurisdiction-wide forest conservation and aligns with COP30 goals for accelerating forest climate finance.

Standard Chartered has announced a landmark agreement with the Brazilian State of Acre to bring high-integrity forest protection carbon credits to market over the next five years. The partnership is expected to deliver up to 5 million jurisdictional credits in 2026, with the credits registered under the Architecture for REDD+ Transactions (ART) using the verified TREES methodology, approved by the Integrity Council for the Voluntary Carbon Market (ICVCM).

Unlike project-based credits, jurisdictional carbon credits cover entire regions and are overseen by governments. This initiative aims to support forest conservation across Acre—located in the Amazon rainforest—while delivering direct economic, environmental, and social benefits to local populations.

Marisa Drew, Chief Sustainability Officer at Standard Chartered, explained the rationale behind the bank’s involvement:
“Without deploying new market mechanisms, standing forests are unlikely to be protected because the short-term economic incentive for deforestation nearly always outweighs the perceived value of these long-term natural assets in situ. 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.”

Under the benefit-sharing strategy, 72% of the net funds generated will go to indigenous and local communities. These funds will support initiatives such as sustainable livestock farming, reforestation of secondary forests, low-impact clearings, and community-based tourism. The remaining 28% will be allocated to project management, governance, monitoring, and emergency responses to extreme weather events.

RELATED ARTICLE: Standard Chartered Pioneers Debt Financing for Carbon Removal Project with UNDO

The credits will be exclusively sold by Standard Chartered, providing a blueprint for other jurisdictional-level efforts to combat deforestation. Germana Cruz, CEO & Head of Financial Institutions, LATAM at Standard Chartered, stated:
“As the world looks toward COP30, the State of Acre is stepping forward with bold leadership on carbon markets – combining environmental ambition with economic opportunity. Standard Chartered is proud to support this vision by bringing our global expertise in sustainable finance to help build credible, scalable carbon market solutions for our markets.”

The State of Acre selected Standard Chartered as its partner based on the bank’s global carbon market capabilities and its commitment to equitable community outcomes. A critical component of the project was its community consultation process, which took place in May 2025 and included a formal review and refinement of the benefit-sharing strategy by indigenous and local communities across five regions.

Mr. Amarisio Freitas, Secretary of the Treasury of the State of Acre, commented:
“This arrangement will bring economic and social benefits to the people of Acre, while protecting our natural resources and supporting the traditional communities and indigenous peoples of our state. The government has fought for a fair society by providing solutions for all its inhabitants, creating development mechanisms in the regions furthest from the capital without negatively impacting the ecosystem. This arrangement provides us an effective tool in the fight for sustainable economic development. We are excited to work with Standard Chartered on this groundbreaking innovation.”

An independent assessment of Acre’s jurisdictional programme under the ART-TREES standard is currently being conducted by Sylvera, a leading carbon data provider. This marks the first such evaluation for a Brazilian jurisdiction and is expected to enhance transparency and investor confidence.

The initiative supports Brazil’s national strategy to halt and reverse deforestation by 2030 and aligns with the COP30 Presidency’s emphasis on accelerating climate finance for forests and developing economies.

Follow ESG News on LinkedIn