Temasek-owned decarbonization solutions-focused investment platform GenZero and global commodities trading company Trafigura announced today a commitment to invest more than $100 million in Brújula Verde, a nature-based project in Colombia anticipated to produce high-integrity carbon removal credits, by restoring land degraded by intensive agricultural activities and fires.

Located in Orinoco River Basin, the Brújula Verde project is the largest nature-based carbon removal project in Colombia, targeting the afforestation and reforestation on degraded lands, with 24 million mixed-species trees to be planted, without any planned commercial harvest activities, and aimed at restoring up to 30,000 hectares of land that has been degraded by agricultural activities such as cattle grazing.

The project is anticipated to remove more than 20 million tonnes of carbon over its lifetime, and will include high resolution sensing for precise carbon removal monitoring, eDNA sampling to track its impact on biodiversity, ecosystem health assessments covering aspects including biodiversity, hydrology, and social impacts.

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.”

Trafigura initially invested in the project in 2023 with the first phase of the project over the past year planting trees on 10,000 hectares. According to the companies, the new investment will double the size of the project. The project is anticipated to issue its first carbon credits in 2025.

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.”