€8.5 million ($9.3 million) investment will fund the restoration of 1,200 hectares of Atlantic Forest across eight municipalities in Bahia
Nearly 2 million seedlings of more than 70 native species will be planted by 2027, creating ecological corridors and biodiversity recovery
Project expected to generate 525,000 carbon credits over 40 years and 80 local jobs, supporting both climate goals and socio-economic growth
Carbon2Nature Brasil, a joint venture between Neoenergia and Iberdrola’s Carbon2Nature, has joined forces with ecosystem restoration company Biomas to co-develop the Muçununga Project in southern Bahia. The €8.5 million ($9.3 million) initiative will restore 1,200 hectares of Atlantic Forest—equivalent to about 1,200 soccer fields—across eight municipalities by planting nearly 2 million seedlings from over 70 native species including araçá, copaíba, ipê-amarelo, and jatobá.
According to MSCI Carbon Markets, only 1% of global forest recovery projects for carbon use more than 10 species. By contrast, the Muçununga Project will reestablish ecological corridors across Belmonte, Eunápolis, Guaratinga, Itagimirim, Itapebi, Mascote, Potiraguá, and Santa Luzia, making it a model for biodiversity-led carbon initiatives.
Beyond ecological benefits, the project is designed to strengthen local economies. Around 80 direct jobs will be created in the region, while the restoration model will be financed by the sale of carbon credits. Over its 40-year horizon, the project is expected to generate approximately 525,000 credits, each equivalent to one ton of CO₂ removed from the atmosphere.
RELATED ARTICLE: Iberdrola Launches Carbon2Nature, Nature-Based Carbon Reduction Project
Eduardo Capelastegui, CEO of Neoenergia, said: “The new partnership between Carbon2Nature Brasil and Biomas celebrates the meeting of two complementary companies focused on two important agendas for society: sustainability and social development. The project reaffirms our commitment to expanding environmental benefits and quality of life, especially in regions where we are present, such as the state of Bahia.”
Fabio Sakamoto, CEO of Biomas, added: “The addition of Carbon2Nature Brasil to the Muçununga Project reinforces the integrity and technical quality of the initiative. This is a qualified partner, with a deep understanding of the sector, who recognizes ecological restoration as a concrete way of generating environmental and social value.”
Biomas, whose shareholders include Itaú, Marfrig, Rabobank, Santander, Suzano, and Vale, aims to restore 2 million hectares of degraded or unproductive land over the next two decades. Meanwhile, Carbon2Nature Brasil projects it will capture over 10 million tons of CO₂ in the coming years.
The Muçununga Project comes as Brazil prepares to host COP30, sending a strong signal of investor confidence in the nation’s potential to lead in scalable nature-based solutions.
Follow ESG News on LinkedIn
