GenZero and Trafigura Announce US$100M Expansion of the Brújula Verde Nature-Based Carbon Removals Project in Colombia

Singapore, 11 November 2024 - Trafigura Group Pte Ltd (“Trafigura”), a market leader in the global commodities industry, is pleased to announce a significant expansion of the Brújula Verde landscape restoration project in collaboration with GenZero, a Temasek-owned investment platform focused on accelerating decarbonisation globally. This landmark commitment of over US$100m will double the size of the project for the production of high-integrity carbon removal credits, by restoring land degraded by intensive agricultural activities and fires.

The Brújula Verde project, located in Colombia’s Orinoco River Basin, one of the country’s most biodiverse areas, involves the planting of over 24 million mixed-species trees by the project’s operational partner, Inverbosques – which is one of the largest private employers in the region. This project involves afforestation and reforestation on degraded lands without any planned commercial harvest activities, preserving the area's natural resources, while unlocking significant community benefits.

Matthew Nelson, Head of Carbon Investments at Trafigura said: "We are delighted to welcome GenZero to this collaboration. This expansion demonstrates how investment grade carbon removal assets can enable institutional finance at scale. GenZero’s partnership will enhance the scope and impact of Brújula Verde, bringing local employment alongside environmental and biodiversity benefits to the region, whilst producing high integrity nature-based carbon removal credits."

Hoon Ling Min, Director of Investments at GenZero said: “The Brújula Verde project marks an important effort in restoring one of Colombia’s most biologically diverse areas. It is a unique project which adopts a restoration bridge concept by reconditioning soil health through reforestation, which enables the reintegration of native species gradually. This in turn supports the delivery of high-quality carbon credits, essential in broader efforts to build high-integrity carbon markets.”

Over 2023 and 2024, the project successfully planted 10,000 hectares, with an additional 10,000 hectares to be planted. Substantial investments into developing and expanding nursery capacities and logistics have also contributed to significant infrastructural development within the Orinoco River Basin. This in turn has supported local employment, providing over 700 direct and indirect jobs to the community.

The project also harnesses the expertise of leading specialist service providers and operators. These include: (i) Nature Metrics which focuses on using tools such as eDNA to monitor biodiversity assessment and uplift monitoring; (ii) Arkadiah Technology which provides digital monitoring, reporting and verification (DMRV) capabilities and the monitoring of carbon performance; (iii) Ingeobosques which ensures alignment with the Forest Stewardship Council (FSC) and International Finance Corporation (IFC) Performance Standards; and (iv) South Pole which specialises in Carbon Asset Development.

The project’s first issuance of carbon credits is anticipated in late 2025, and the project design includes direct revenue sharing with local communities to support social programs.

Nursery operator at the Brújula Verde project, in Colombia’s Orinoco River Basin.