Published by Todd Bush on August 23, 2023
Investment supports carbon removal through native, biodiverse reforestation of the region.
NEW YORK, Aug. 22, 2023 /PRNewswire/ -- The Rockefeller Foundation announced today an investment of $5 million to "The Amazon Reforestation Fund", a vehicle created by Mombak, a Brazilian startup which aims to generate high-quality carbon credits through reforestation of the Amazon. The investment is part of a $100 million financing to support the largest biodiverse reforestation effort for carbon removal in the region, enabling Mombak to remove carbon, improve soil quality, enhance biodiversity, and create sustainable economic alternatives for local communities.
>> Additional Reading: U.S. Department of State, Bezos Earth Fund, and The Rockefeller Foundation Convene Energy Transition Accelerator High-Level Consultative Group
"Nature-based solutions could help reduce one-third of the necessary global emissions by the end of the decade, but remain grossly underfunded, with an estimated $700 billion financing gap per year," said Maria Kozloski, Senior Vice President of Innovative Finance at The Rockefeller Foundation. "The Rockefeller Foundation is proud to help close this gap by investing in Mombak's innovative model that seeks to remove carbon by reforesting the Amazon."
The company's first project in Northern Brazil will plant three million trees with more than 100 native species, including 200,000 seedlings of endangered species. Over one million trees will have been planted by next month, including endangered or vulnerable species such as Cedro Rosa (Cedrela fissilis), Castanheira (Bertholletia excelsa), Itauba (Mezilaurus itauba), Mogno (Swietenia macrophylla), and others. The first project has also had a positive impact on the region, creating over 50 formal jobs in the local municipality. It is expected that Mombak will kick-off multiple additional projects of this kind before the end of 2023.
Mombak's business model is centered on the creation, verification, and sale of carbon removal credits. It does this by reforesting Brazilian pastureland using native and biodiverse tree species to rebuild the forests of the Amazon. The additional carbon abated from the atmosphere from these new forests produces high-quality carbon removal credits. The credits are then sold via both spot sales and long-term customer offtake agreements.
"The Rockefeller Foundation's investment reinforces the integrity of our projects," confirms Peter Fernandez, CEO and co-founder of Mombak. "One of the biggest issues in our industry is trust. We are working to create the world's highest-integrity carbon projects."
Besides attracting strategic investors, Mombak has also partnered with leading NGOs. "We want to raise the bar in the industry, and we know that our investors and partners will help us in this process. Through an investor and customer-led product development initiative, we dedicated more than a year to meeting the most demanding specifications and requirements with respect to carbon removal, biodiversity, sustainable resource use, and interaction with local communities, among other impact indicators," says Fernandez.
"We are excited to be supporting Mombak's high-calibre team to fill a critical market gap for high-quality carbon credits," said Thomas Belazis, Director of Innovative Finance at The Rockefeller Foundation and manager of the investment. "Together, alongside world-class investors, we are mobilizing capital into the Amazon to address one of the world's most pressing climate challenges."
The Rockefeller Foundation's $5 million investment in Mombak alongside several blue chip investors represents the latest effort to strengthen the marketplace for carbon credits. From November 2022 to June 2023, The Rockefeller Foundation provided a grant to the Nature Conservancy to address the lack of investable nature-based solutions projects, and helped co-launch three innovative efforts: the Energy Transition Accelerator, the African Carbon Markets Initiative, and the Coal to Clean Credit Initiative.
Mombak ("Awaken" in Tupi-Guarani) was founded in 2021 by Peter Fernandez (former CEO at 99) and Gabriel Silva (former CFO at Nubank). They teamed up to use their tech backgrounds to solve one of the biggest problems in the world: climate change. Mombak intends to be the world's largest high-integrity reforestation carbon removal company. Mombak partnered with some of the world's largest and most sophisticated investors to remove carbon from the atmosphere and mitigate climate change, reaching an initial dry powder in excess of $100 million, including coinvestment commitments. For more information, visit our website.
The Rockefeller Foundation is a pioneering philanthropy built on collaborative partnerships at the frontiers of science, technology, and innovation that enable individuals, families, and communities to flourish. We make big bets to promote the well-being of humanity and make opportunity universal and sustainable. Our focus is on scaling renewable energy for all, stimulating economic mobility, and ensuring equitable access to health care and nutritious food. For more information, sign up for our newsletter at www.rockefellerfoundation.org.
SOURCE The Rockefeller Foundation
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Inside this Issue 🌱 Holcim Invests in Sublime Systems to Scale Up Innovative Low-carbon Technology ⚡ New Technology Transforms Captured Carbon Into Clean Energy Source 🚗 Say Goodbye to EVs – This ...
Inside this Issue 💡 Bill Gates-backed Startup Says a Global Gold Rush for Buried Hydrogen is Picking Up Momentum 🌍 Largest Hydrogen Highway to Link America and Europe: 10 Million Metric Tons and a...
Inside this Issue 🌿 Gevo to Acquire Red Trail Energy Assets in North Dakota, Including Operating Low-carbon Ethanol Production and Carbon Sequestration Facilities, Expanding Platform for Sustainab...
Hyundai Motor Company and Škoda Group sign a Memorandum of Understanding (MOU) during the Korea-Czech Business Summit in Prague Both parties to cooperate in establishing a hydrogen economy and...
UNDO Lands Groundbreaking Carbon Removals Financing Deal in 'Global First'
UK carbon removal start-up UNDO has secured an innovative debt financing deal, supported by significant corporates like British Airways and Standard Chartered, to accelerate the expansion of its en...
Say Goodbye to EVs – This Water-Hydrogen Engine Will Change Everything in Automotion
Honda launches a model identical to the Dodge Challenger – here’s when you can buy it Neither Toyota nor Hyundai – JD Power confirms the list of most reliable cars on the US market. Chevy an...
New Technology Transforms Captured Carbon Into Clean Energy Source
Researchers from Tokyo Metropolitan University have developed an innovative electrochemical cell that efficiently converts captured carbon dioxide (CO2) into formate, a green fuel. This new system,...
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.