Planting forests to generate carbon credits is emerging as a major tool for ecosystem restoration in Brazil, offering a potential pathway to revive degraded landscapes while supporting climate mitigation efforts. However, experts say the fast-growing sector still faces challenges related to credibility, long-term responsibility and the complex nature of restoring native ecosystems.
Founded in 2021, Brazilian company re.green has positioned itself at the forefront of commercial forest restoration by restoring degraded land and selling carbon credits. The company currently operates across 34,000 hectares in the Amazon and Atlantic Forest regions and aims to restore one million hectares of tropical forest nationwide. Its work received global recognition after winning the Earthshot Prize in 2025.
Restoration Projects Turn Degraded Pasture into Native Forest Ecosystems
In southern Bahia’s Eunápolis region, centuries of deforestation for agriculture left vast tracts of land degraded and unproductive. Since 2022, re.green has been restoring native Atlantic Forest species on the Ouro Verde farm, where more than 340 hectares of previously degraded cattle pasture have already been transformed into growing forest.
According to company officials, the land has shifted from sandy, damaged soil to a regenerating forest with over 60 native species and trees exceeding four metres in height within two years. Restoration methods include soil preparation, planting native seedlings, assisted natural regeneration and continuous monitoring to ensure resilience against climate stress, fire and invasive species.
Brazil faces a major restoration challenge, with up to 25 percent of its native vegetation undergoing degradation and more than one-fifth of pasture land severely damaged. The federal government has committed to restoring 12 million hectares of forest by 2030, a target experts say cannot be achieved without private-sector involvement due to the scale, cost and complexity of restoration.
Carbon Credit Sales Drive Investment but Raise Accountability Concerns
Re.green’s business model relies primarily on selling carbon credits generated from restored forests on private land. While credits from avoided deforestation projects have faced criticism, experts say restoration-based credits offer more measurable and reliable carbon removal, along with biodiversity and social benefits.
Brazil’s voluntary carbon market has expanded rapidly, especially after legislation passed in late 2024 laid the groundwork for a regulated carbon market. Still, concerns persist over transparency and long-term accountability, particularly as restoration credits are often sold years before forests fully mature. Critics question who will bear responsibility if projects fail over decades.
Despite this, demand for high-integrity restoration credits is growing. Re.green has signed carbon offtake agreements with global companies including Microsoft and Nestlé, with restoration credits commanding significantly higher prices than traditional avoided-deforestation credits due to their long-term carbon capture and ecosystem benefits.
Community Participation Seen as Key to Long-Term Forest Survival
Beyond carbon capture, restoration projects increasingly focus on local livelihoods and community engagement. In Maranhão’s Amazon region, re.green has supported nearby communities in developing seed collection businesses, reviving traditional practices and creating new income streams linked to restoration work.
Experts say involving local communities is critical to ensuring forests survive long after initial planting. Restoration is a long-term investment requiring sustained financing, reliable seed supply and ongoing monitoring. As restoration efforts expand, analysts argue that future markets must value forests not only for carbon and timber, but also for water regulation, biodiversity protection and climate resilience.