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Biomas, an ecosystem restoration company with support from investors Itaú, Marfrig, Rabobank, Santander, ��������, and Vale, announced its first ecological restoration project this Friday (25). The initiative will restore 1,200 hectares of the Atlantic Forest on land owned by Veracel Celulose, a forestry based industry that has operated for more than 30 years in the South of Bahia. The restoration project includes the planting of more than 70 native species. The initial investment is estimated at US$ 9.3 million.

Founded at the end of 2022, Biomas is part of a new, emerging economic sector in Brazil, capable of creating jobs and income sources while also mitigating the climate and biodiversity crises. The Muçununga Project, named after the unique ecosystem that is found only in this Atlantic Forest region, is part of a larger goal to restore 2 million hectares of degraded or unproductive land over the next 20 years.

Considering that forests remove significant volumes of carbon dioxide from the atmosphere, the business model is based on financing restoration through carbon credits generated in the restored areas. The project is expected to generate approximately 500,000 carbon credits over 40 years. Each carbon credit represents one metric ton of carbon dioxide removed from the atmosphere.

“Our business is not just planting trees and selling carbon. Carbon is a means to finance the restoration, but not the end goal,” says Fabio Sakamoto, CEO of Biomas. “Ecological restoration generates multiple benefits, such as improved soil and water quality, biodiversity protection and restoration, and climate regulation,” he states. The initiative is also expected to create job and income opportunities in the region, among other social benefits.

“Brazil is the country with the most potential to remove carbon from the atmosphere using nature based solutions. In addition to the expertise and large-scale forestry companies, Brazil has a large amount of land that can be restored without interfering with other productive activities,” states Sakamoto. Degraded pastureland in Brazil surpasses 100 million hectares, according to the 2024 report written by Boston Consulting Group (BCG), WWF, and The Nature Conservancy (TNC). This land area is equivalent to the size of France and Spain combined.

Project Muçununga

Project Muçununga, Biomas’ first, is located in the Hileia Bahia, an area inside of the Central Atlantic Forest Corridor, one of the most biodiverse regions on the planet. With only 26.2% of original, native vegetation remaining in the region, according to data from MapBiomas’, the Atlantic Forest is the Brazilian biome that has suffered the most transformations in the last few centuries. The areas that Biomas will restore belong to Veracel and are spread across 8 municipalities in southern Bahia.

“This partnership with Biomas reinforces Veracel’s commitment to environmental conservation and sustainable development in the areas we operate in. It’s much more than just shared action, we are contributing our solid track that positions us as a reference in ecological restoration and biodiversity protection initiatives in the Atlantic Forest of southern Bahia. By allocating our own areas for restoration with native species, we reaffirm our role as protagonists in promoting nature based solutions and preserving essential ecosystems,” says Caio Zanardo, CEO of Veracel.

Veracel is a company that practices sustainable management of its eucalyptus forests and maintains a ratio of one hectare of Atlantic Forest planted for every hectare of eucalyptus planted for pulp production. With expertise in ecological restoration, the company supports biodiversity conservation projects and the preservation of local ecosystems.

Over the next two years, Biomas will plant 2 million seedlings in the project area. The high diversity of native species will be a key differentiator: more than 70 species will be planted, like araçá, copaíba, guapuruvu, ipê-amarelo, jacarandá-da-bahia and jatobá. This variety of plants ensures the recovery of the natural ecosystem and adds greater value to the project. According to MSCI Carbon Markets data, globally, only 1% of native plant life restoration projects for carbon use more than 10 plant species.

By promoting biodiversity and social impact, and being fully focused on restoration of native plants, the initiative will create premium carbon credits that are high quality and have higher market value. Last year, the company formed a new partnership with the International Finance Corporation (IFC), the private investment arm of the World Bank, to improve processes and indicators of forest restoration projects, guaranteeing high quality carbon credit generation.

“We are pleased to share IFC’s global expertise in social, environmental, biodiversity, and governance indicators with Biomas,” shares Raphael Eskinazi, Regional Manager at IFC. “This partnership also offers us a valuable opportunity to deepen our understanding of the specifics of the ecosystem restoration market,” Eskinszi adds.

Project Muçununga will seek the highest standards that ensure tangible benefits for the climate, local communities, and biodiversity.

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