Trafigura Expands Carbon Removal Project in Colombia with $100 Million Investment

Trafigura Group has announced a significant $100 million expansion of its Brújula Verde carbon removal project in Colombia. This expansion is in partnership with GenZero, an investment platform owned by Singapore’s Temasek.

Project Focuses on Landscape Restoration

Located in the Orinoco River Basin in eastern Colombia, the Brújula Verde project aims to restore large-scale landscapes. The initiative will produce high-integrity, nature-based carbon removal credits by rehabilitating land degraded by agricultural activities and fires.

The project will see the planting of over 24 million mixed-species trees, with local partner Inverbosques leading the effort. Inverbosques is one of the largest private employers in the region.

The primary goal is ecological restoration without commercial harvesting. This approach preserves Colombia’s rich biodiversity while creating benefits for local communities.

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A Model for High-Quality Carbon Credits

Matthew Nelson, Trafigura’s Head of Carbon Investments, stated that the partnership with GenZero will expand Brújula Verde’s environmental impact. The expansion will also create local jobs and establish a sustainable model for generating high-quality carbon credits.

Hoon Ling Min, Director of Investments at GenZero, emphasized the project’s “restoration bridge” concept. This method focuses on improving soil health and reintegrating native species, which is vital for creating credible carbon credits.

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Progress and Local Impact

Since 2023, the project has already planted 10,000 hectares of trees. The goal is to add another 10,000 hectares by 2024.

The project has also created over 700 direct and indirect jobs, significantly benefiting the local economy. Infrastructure improvements, including nurseries and logistics, have also enhanced the project’s operational capabilities.

Supporting Local Communities and Biodiversity

The Brújula Verde project collaborates with experts such as Nature Metrics, which monitors biodiversity using eDNA technology, and South Pole, specialists in carbon asset development.

The first carbon credits from the project are expected to be generated by late 2025. A revenue-sharing model will support local social initiatives, reinforcing the project’s commitment to both environmental and community benefits.