Azuero
Reforestation
Overview
The Azuero Reforestation project, located on the Azuero Peninsula in Panama, is being developed by Azuero Reforestación Colectiva, S.A., a wholly owned subsidiary of leading project developer Ponterra Ltd. The project is expected to restore 10,000 hectares of degraded tropical forest that has been converted to low-density cattle ranchland over the last century. Ponterra is restoring this degraded land with over 75 native tree species, using a vertically integrated reforestation strategy including nurseries, seed banks, and deep community involvement. Ponterra expects to plant over six million trees and create more than 300 local jobs.
The Azuero Reforestation project is expected to remove 3.24 million tonnes of CO2e and generate an equivalent number of carbon credits over the project’s 30-year life, with expected first credit issuance in 2027. The project is expected to be registered with Verra, who has selected the project to participate in their new Nature Framework under their Sustainable Development Verified Impact Standard (SD VISta) program given the strong social and environmental co-benefits associated with the project.
The project is being funded by an investor group composed of Carbon Streaming, Microsoft, and Rubicon Carbon and is one of the largest nature-based carbon removal deals to date.
Impact Highlights
Protecting Climate & Biodiversity
The Azuero forest in Panama is a unique tropical dry forest that has been degraded by decades of destructive cattle ranching. Ponterra aims to restore this area by planting over six million saplings of 75 native tree species, which promote biodiversity, are more resistant to drought and pests, and better contribute to overall climate resilience. Planting activities will also restore critical habitat for unique species that do not exist anywhere else in the world including the Azuero Spider Monkey, which is in critical danger of extinction.
Creating Healthy Communities
Healthy forests support healthy communities. The project will create ~300 local jobs for 5-years during the initial planting and restoration phase of the project. Several nurseries will grow the six million saplings required, with over 30% managed by women. Local communities will receive over $70 million of direct and indirect benefits in the first 30 years of the project’s lifespan through a combination of lease payments, a share of carbon credit sales paid to landowners, salaries to local workers, and donations to local NGOs for environmental education.
Carbon Credits
The Azuero Reforestation project is expected to generate approximately 3.24 million carbon removal credits over the 30-year life of the project. A portion of the revenue from the sale of the carbon credits will flow back to Ponterra (the project partner), the project and the local communities. Closing of the Azuero Reforestation Stream is subject to customary conditions with closing expected to occur in Q2 2024.
Key Attributes
Project Type
Removal / Sequestration
Project Category
Reforestation (ARR)
Standard Body
Verra | SD Vista Nature Framework
Number of UN SDGs
6 targeted
Initial Credit Issuance
2027E
About SD Vista Nature Framework
The project has been selected as a pilot for Verra’s new SD VISta Nature Framework designed to pioneer the issuance of nature credits, which represent one quality hectare equivalent of biodiversity uplift from a baseline as a result of the project intervention. Nature credits constitute positive investments in nature that enable buyers to demonstrate their contributions to a nature-positive future.
Project Partner
Ponterra is a leading developer and operator of the world’s highest quality carbon and biodiversity projects. By focusing on restoring nature on degraded agricultural lands, Ponterra aims to reverse climate change, bring back biodiversity, and uplift rural communities. Their vertically integrated model enables end-to-end management of the entire restoration process and establishes a precedent for how to scale nature-based solutions to create ecological and human prosperity. Founded in 2023 in London by experienced nature-based solutions and climate tech operators, Ponterra now has a diverse team of professionals across the UK, US, and Latin America.