LA PAZ (Reuters) -Bolivia aims to sell $5 billion worth of carbon offset credits in a bid to meet a goal to end deforestation within its borders by the end of the decade, the government said on Thursday.
Countries or companies can purchase carbon credits to offset their own greenhouse gas emissions by financing projects that reduce climate-warming emissions elsewhere.
“The intention is to conserve, plant and reforest. And it’s a way to generate value in this country,” Bolivian Economy Minister Marcelo Montenegro said in a press conference.
Bolivia’s economy has been struggling, with its foreign reserves nearly depleted and many people unable to get dollars. The country has also been facing increased deforestation and forest fires, smashing its record with at least 10 million hectares (24.7 million acres) burned during this year’s fire season.
“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 said.
“If the intentions to plant, reforest and mitigate this type of environmental damage are valued, then it’s welcomed.”
The Bolivian “sovereign carbon credits” will comply with “Article 6” rules for offsetting under the Paris Agreement, meaning that foreign countries could purchase them to meet their own national climate targets, according to Laconic Infrastructure Partners, which is assisting with the sale.
Talks are now underway with potential buyers, including large corporations as well as other governments, Laconic Chief Executive Andrew Gilmour told Reuters.
“At COP29, there are interested parties at the table,” he said, adding that first deliveries could take place as early as the second quarter of next year.
The equivalent of around 250 million metric tons of offsets will be available in the form of securities rather than traditional credits, and all the proceeds must be used to protect forests, he said.
Laconic’s platform manages the data to ensure the products are compliant with the Paris Agreement and represent genuine emission cuts. It will also monitor progress every six months, with Bolivia liable for default payments if targets are not achieved.
(Reporting by Monica Machiaco and Alexander Villegas; Additional reporting by David Stanway in Singapore; Editing by Sandra Maler and Stephen Coates)
