Bolivia's $5 Billion Green Gambit: Fighting Deforestation with Carbon Credits

Bolivia aims to prevent deforestation by selling $5 billion worth of carbon credits. The initiative aligns with the Paris Agreement, offering credits to companies or countries to offset emissions. These sovereign credits intend to bolster Bolivia's challenged economy while conserving and reforesting land.

Bolivia has launched an ambitious plan to tackle deforestation by selling $5 billion in carbon offset credits. The government announced its intention to eliminate deforestation within its borders by the decade's end, leveraging carbon credits to finance climate-saving projects globally.

This move comes as Bolivia grapples with economic hardships, marked by nearly depleted foreign reserves and rampant deforestation. The nation witnessed a devastating fire season, destroying at least 10 million hectares of forests, underscoring the urgency of the initiative.

Bolivia's 'sovereign carbon credits' will support the Paris Agreement, allowing foreign countries to purchase them for their national climate goals. Talks with potential corporate and governmental buyers are advancing, with executions possible by the second quarter of next year. The proceeds are exclusively earmarked for forest protection.

(With inputs from agencies.)