Reforestation startup Mombak has successfully closed a R$100 million ($17.8 million) funding deal with Santander Brasil and Brazil’s development bank BNDES, marking the first reforestation project under Brazil’s R$10 billion New Climate Fund. The funds will fuel Mombak’s efforts to restore degraded farmland in the Amazon, contributing to Brazil’s growing carbon offset market.
Mombak specializes in reforesting Amazon land by replanting native species to generate carbon credits. The company currently manages 45,000 acres of land—about three times the size of Manhattan—and is set to plant 8 million trees by June 2025. Mombak has already signed carbon credit agreements worth $150 million with companies like Microsoft, Google, and McLaren.
The New Climate Fund, launched in 2023, was designed to unlock investment in climate-related projects, and this deal signals increasing confidence from the private sector in Brazil’s carbon market. Despite challenges in securing financing due to perceptions of risk, this transaction, facilitated by Santander, demonstrates the growing viability of reforestation initiatives.
Mombak co-founder Gabriel Silva expressed the importance of this milestone, stating, “There is a challenge between getting this approval and actually being able to use the capital. We are reaching a very important milestone.”
BNDES director Tereza Campello emphasized the role of development banks in supporting emerging markets, noting, “This deal shows the market is viable and that not only BNDES believes in it, but other financial institutions too.”
With nearly 60% of the Amazon located in Brazil, the country is positioned to become a key player in the global carbon offset market, with Mombak’s project potentially acting as a catalyst for further investments.
Source: esg.com
