Singapore – 11 November, 2024 – Trafigura Group Pte Ltd (“Trafigura”), a market leader in the global commodities industry, is pleased to announce a significant expansion of the Brújula Verde landscape restoration project in collaboration with GenZero, a Temasek-owned investment platform focused on accelerating decarbonisation globally. This landmark commitment of over US$100m will double the size of the project for the production of high-integrity carbon removal credits, by restoring land degraded by intensive agricultural activities and fires.
The Brújula Verde project, located in Colombia’s Orinoco River Basin, one of the country’s most biodiverse areas, involves the planting of over 24 million mixed-species trees by the project’s operational partner, Inverbosques – which is one of the largest private employers in the region. This project involves afforestation and reforestation on degraded lands without any planned commercial harvest activities, preserving the area’s natural resources, while unlocking significant community benefits.
Matthew Nelson, Head of Carbon Investments at Trafigura said: “We are delighted to welcome GenZero to this collaboration. This expansion demonstrates how investment grade carbon removal assets can enable institutional finance at scale. GenZero’s partnership will enhance the scope and impact of Brújula Verde, bringing local employment alongside environmental and biodiversity benefits to the region, whilst producing high integrity nature-based carbon removal credits.”
Hoon Ling Min, Director of Investments at GenZero said: “The Brújula Verde project marks an important effort in restoring one of Colombia’s most biologically diverse areas. It is a unique project which adopts a restoration bridge concept by reconditioning soil health through reforestation, which enables the reintegration of native species gradually. This in turn supports the delivery of high-quality carbon credits, essential in broader efforts to build high-integrity carbon markets.”
Over 2023 and 2024, the project successfully planted 10,000 hectares, with an additional 10,000 hectares to be planted. Substantial investments into developing and expanding nursery capacities and logistics have also contributed to significant infrastructural development within the Orinoco River Basin. This in turn has supported local employment, providing over 700 direct and indirect jobs to the community.
The project also harnesses the expertise of leading specialist service providers and operators. These include: (i) Nature Metrics which focuses on using tools such as eDNA to monitor biodiversity assessment and uplift monitoring; (ii) Arkadiah Technology which provides digital monitoring, reporting and verification (DMRV) capabilities and the monitoring of carbon performance; (iii) Ingeobosques which ensures alignment with the Forest Stewardship Council (FSC) and International Finance Corporation (IFC) Performance Standards; and (iv) South Pole which specialises in Carbon Asset Development.
The project’s first issuance of carbon credits is anticipated in late 2025, and the project design includes direct revenue sharing with local communities to support social programs.
About GenZero
GenZero is an investment platform company focused on accelerating decarbonisation globally. Founded by Temasek, it seeks to deliver positive climate impact alongside long-term sustainable financial returns by investing in opportunities with the potential to be nurtured into impactful and scalable solutions.
Driven by a common purpose to decarbonise for future generations, GenZero recognises the need for a holistic and integrated approach to achieve a net zero world. It adopts a flexible investment approach across three focus areas to drive climate impact: (i) nature-based solutions that help protect and restore our natural ecosystems while benefiting local communities and biodiversity; (ii) technology-based solutions that deliver deep decarbonisation impact; and (iii) carbon ecosystem enablers which refer to companies and solutions that support the development of an effective, efficient, and credible carbon ecosystem.
For more information on GenZero, visit https://www.genzero.co.
About Trafigura
Trafigura is a leading commodities group, owned by its employees and founded over 30 years ago. At the heart of global supply, Trafigura connects vital resources to power and build the world. We deploy infrastructure, market expertise and our worldwide logistics network to move oil and petroleum products, metals and minerals, gas and power from where they are produced to where they are needed, forming strong relationships that make supply chains more efficient, secure and sustainable. We invest in renewable energy projects and technologies to facilitate the transition to a low-carbon economy, including through MorGen Energy and joint venture Nala Renewables.
The Trafigura Group also comprises industrial assets and operating businesses including multi-metals producer Nyrstar, fuel storage and distribution company Puma Energy, the Impala Terminals joint venture and Greenergy, supplier and distributor of transportation fuels and biofuels. The Group employs over 12,000 people, of which over 1,400 are shareholders and is active in 156 countries.
