November 12, 2024 [Storage Terminals Magazine]- Trafigura Group Pte Ltd, a leader in the global commodities industry, has announced a major expansion of the Brujula Verde landscape restoration project in partnership with GenZero, a Temasek-owned investment platform focused on advancing global decarbonisation efforts. This significant investment of over US$100 million aims to double the size of the project for the generation of high-integrity carbon removal credits through the restoration of land degraded by intensive agriculture and wildfires.
The Brujula Verde project is located in Colombia’s Orinoco River Basin, an area known for its rich biodiversity. The project involves planting more than 24 million mixed-species trees, managed by operational partner Inverbosques, one of the largest private employers in the region. The project’s approach is centred on afforestation and reforestation of degraded lands without commercial harvesting, ensuring the preservation of natural resources and creating substantial community benefits.
Matthew Nelson, head of Carbon Investments at Trafigura, stated: “We are delighted to welcome GenZero to this collaboration. This expansion demonstrates how investment-grade carbon removal assets can enable institutional finance at scale. GenZero’s partnership will enhance the scope and impact of Brujula Verde, bringing local employment alongside environmental and biodiversity benefits to the region, while producing high-integrity nature-based carbon removal credits.”
Hoon Ling Min, director of investments at GenZero, remarked: “The Brujula Verde project marks an important effort in restoring one of Colombia’s most biologically diverse areas. It is a unique project which adopts a restoration bridge concept by reconditioning soil health through reforestation, which enables the reintegration of native species gradually. This in turn supports the delivery of high-quality carbon credits, essential in broader efforts to build high-integrity carbon markets.”
Throughout 2023 and 2024, the project successfully planted 10,000 hectares, with plans for an additional 10,000 hectares. Significant investments have been made to expand nursery capacities and logistics, fostering infrastructural development in the Orinoco River Basin and generating over 700 direct and indirect jobs for the local community.
The initiative also benefits from the expertise of various specialist service providers and operators, including Nature Metrics, which uses eDNA tools for biodiversity assessment and monitoring; Opus Insights, which provides digital monitoring, reporting, and verification for carbon performance; Ingeobosques, ensuring alignment with Forest Stewardship Council and International Finance Corporation standards; and South Pole, which specialises in carbon asset development.
The first issuance of carbon credits is expected by late 2025, with the project design incorporating revenue sharing with local communities to support social programmes.
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