Bolivia plans to raise $5 billion through carbon credits to halt deforestation by 2030. The initiative will fund forest conservation and comply with global climate targets under the Paris Agreement.
Bolivia plans to generate $5 billion by selling carbon credits to combat deforestation and achieve its goal of halting forest loss by 2030. The initiative will allow buyers to offset emissions by funding projects that reduce greenhouse gas emissions.
"The intention is to conserve, plant, and reforest. And it’s a way to generate value in this country," said Economy Minister Marcelo Montenegro at a press conference.
Addressing Environmental and Economic Strains
The country faces significant economic challenges, including nearly depleted foreign reserves and increasing forest fires, which have burned over 10 million hectares this year.
"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.
Compliance with Global Climate Goals
Bolivia’s sovereign carbon credits will follow Article 6 of the Paris Agreement, enabling buyers to meet national climate targets. Laconic Infrastructure Partners, managing the sale, ensures compliance and emission authenticity.
"At COP29, there are interested parties at the table," said Andrew Gilmour, CEO of Laconic, adding that the first deliveries could begin by Q2 2025.
The credits, equivalent to 250 million metric tons of offsets, will be issued as securities, with proceeds dedicated to forest protection. Bolivia will be required to monitor progress and may face penalties for unmet commitments.
This initiative is seen as both an economic opportunity and a contribution to global climate action.
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