Bolivia Seeks $5 Billion in Carbon Credits to End Deforestation by 2030

Bolivia has announced plans to sell $5 billion worth of carbon credits in an ambitious bid to combat rampant deforestation and halt forest loss by 2030. The initiative aims to offer a way for countries and companies to offset their carbon emissions by funding projects that reduce emissions, while simultaneously providing much-needed economic support to Bolivia.

Economy Minister Marcelo Montenegro emphasized the dual goals of this effort, focusing on both environmental preservation and economic relief. “The intention is to conserve, plant, and reforest. And it’s a way to generate value in this country,” Montenegro stated during a recent press conference. The funds raised through the sale of carbon credits will be directed towards forest conservation and reforestation projects, addressing some of the pressing environmental challenges facing Bolivia.

Bolivia’s economy is under considerable strain, with depleted foreign reserves and widespread dollar shortages, while environmental challenges such as large-scale forest fires have further exacerbated the crisis. Over 10 million hectares have been burned during this year’s fire season, putting immense pressure on both economic and environmental stability. Montenegro noted the importance of securing resources to prevent and mitigate such fires, as well as to support reforestation efforts that could prevent future damage.

The carbon credits, referred to as “sovereign carbon credits,” will comply with Article 6 of the Paris Agreement, enabling international buyers to use them towards meeting their national climate targets. Laconic Infrastructure Partners, which is overseeing the sale, ensures compliance and authenticity of emissions reductions through its platform. Laconic CEO Andrew Gilmour expressed optimism at the level of interest, stating that there were already interested parties at COP29, and that the first deliveries could begin as soon as the second quarter of 2025.

The carbon offsets, representing around 250 million metric tons, will be issued as securities, with proceeds mandated to fund forest protection. Progress will be monitored biannually to ensure targets are being met, with Bolivia liable for penalties if commitments are not fulfilled. This initiative offers Bolivia a crucial economic lifeline, while contributing to broader global efforts to combat climate change by halting deforestation and promoting forest regeneration.