Carbon Scandals Expose Land Tenure Fragility in Brazil’s Forest Carbon Markets

Recent controversies surrounding forest carbon projects in Brazil have brought renewed attention to the country’s longstanding challenges with land tenure regularization. As the market for carbon credits expands, the necessitate for clear and secure land rights is becoming increasingly critical for ensuring the integrity and sustainability of these projects.

The Rise of Forest Carbon in Brazil

Brazil is at the forefront of developing large-scale carbon projects, integrating them with timberland management to maximize both environmental and economic benefits. Forest carbon innovation is rapidly gaining traction, particularly in the restoration of degraded lands. Several companies are actively involved in these efforts.

re.green, founded in 2021, is commercially restoring forests by selling carbon credits, with projects spanning 34,000 hectares (84,000 acres) in the Amazon and Atlantic Forest. The company aims to restore 1 million hectares (2.5 million acres) of tropical forests across Brazil and was recognized with an EarthShot Prize in 2025. Their perform focuses on ecosystem restoration, community engagement and data collection.

In Bahia state, re.green is restoring Atlantic Forest species on 344 hectares of unproductive cattle pasture on the Ouro Verde farm. According to Miguel Moraes, director of projects at re.green, the restoration has transformed degraded land into a forest with over 60 species and trees exceeding 4 meters in height. This demonstrates the potential for rapid ecosystem recovery.

ONF International has too been a pioneer in forest carbon projects in Latin America, managing a 10,000-hectare estate in Brazil, with 2,000 hectares reforested since 1999 with 2.5 million trees of 50 different native species. Their Fazenda Sao Nicolau estate has received third-party certification for its social and environmental co-benefits, including biodiversity conservation.

As of early 2026, the Forest Carbon Panel has mapped 139 carbon credit projects in Brazil, with 33 already issuing credits and 96 offering socioenvironmental benefits, all within the voluntary market. This mapping effort provides greater transparency in the rapidly growing sector.

Land Tenure Challenges

Despite the growth of forest carbon projects, Brazil faces significant challenges related to land tenure. Between 11% and 25% of Brazil’s native vegetation is undergoing degradation related to deforestation, and 22% of its pastureland is severely degraded, highlighting the need for restoration efforts. Although, unclear land ownership and complex regularization processes hinder project development and raise concerns about the long-term sustainability of carbon credits.

The Need for Regularization

Addressing land tenure issues is crucial for building trust in the Brazilian carbon market. Clear land rights incentivize long-term investment in forest restoration and conservation, ensuring that projects deliver genuine and lasting environmental benefits. Without secure land tenure, projects are vulnerable to disputes, illegal land grabbing, and the failure to achieve their carbon sequestration goals.

Looking Ahead

The future of forest carbon in Brazil depends on resolving land tenure challenges and establishing a robust regulatory framework. Continued investment in land regularization, coupled with transparent monitoring and verification of carbon credits, will be essential for unlocking the full potential of Brazil’s forests in the fight against climate change.