The Amazon Reforestation Fund, created by Brazilian startup Mombak, has secured two separate investments totaling $35 million from the Rockefeller Foundation and the Canada Pension Plan Investment Board. These investments have helped the fund reach its target funding of $100 million. Mombak aims to become the world’s largest carbon removal company by generating high-quality carbon credits through reforestation projects in the Amazon. The startup has already received support from notable investors such as Byers Capital, Union Square Ventures, and Bain Capital Partnership Strategies. The recent investments from the Rockefeller Foundation and the Canada Pension Plan Investment Board further strengthen Mombak’s mission.
Mombak’s reforestation project focuses on planting native Brazilian tree species on degraded land, ensuring that trees are not cut down for timber production. The project utilizes innovative technology, including drones, satellite imagery, and bioacoustic sensors, to measure carbon baselines, assess biodiversity, and optimize results. The Amazon Reforestation Fund was launched in December 2022 with the goal of raising $100 million to support reforestation efforts in the region. In addition to removing carbon dioxide, the fund aims to improve soil quality and biodiversity. Carbon removal through nature-based solutions is an important strategy in mitigating climate change, and forests play a crucial role in capturing carbon and reducing heat.
Mombak’s first project in Northern Brazil involves planting 3 million trees, including endangered species. By September, over 1 million seedlings will be planted, and the startup plans to initiate multiple projects of this kind by the end of the year. The reforestation project not only contributes to carbon removal but also creates job opportunities within the local community. Unlike existing forests, reforesting Brazil’s pastureland to rebuild the Amazon forest generates high-quality carbon credits by removing additional carbon from the atmosphere. These carbon removal credits can be traded in carbon markets through spot trading or offtake agreements with end-buyers.
The Canada Pension Plan Investment Board has committed to investing up to $30 million in Mombak’s reforestation fund and an additional half a million in the carbon removal startup itself. The CPP Investments recognizes the value of high-quality, verifiable, nature-based carbon removal credits and supports efforts to strengthen carbon credit markets. The Rockefeller Foundation has also made a significant investment of $5 million in Mombak’s reforestation project, contributing to the fund’s goal of $100 million. The foundation emphasizes the importance of nature-based solutions in curbing carbon emissions and closing the financing gap in this area.
Mombak is not only attracting major investors but also collaborating with leading non-governmental organizations to raise the standards in the carbon removal credit industry. The startup focuses on selling carbon removal credits to high-end buyers who use them to offset their own carbon emissions. The carbon removal industry, also known as carbon dioxide removal, has experienced significant growth, with purchases increasing by 437% in the first half of 2023. Mombak has been pre-selling carbon removal credits at a premium price of over $50 each, capitalizing on this growth. The startup plans to raise more funds and deploy $1 billion in the next 3 to 5 years for its Amazon reforestation projects.
This recent funding not only propels Mombak towards its goal of becoming a prominent carbon removal leader but also highlights the critical role of nature-based solutions in addressing climate change. It underscores the need for innovative models and increased financing to support carbon removal efforts. The investments from the Rockefeller Foundation and the Canada Pension Plan Investment Board demonstrate the growing recognition of the importance of reforestation and carbon removal in combating climate change.