The Constitutional Court in Colombia has annulled a carbon credit deal in the Amazon’s Pira Parana territory, following claims from six local tribes that it was signed without their consent.
The deal, involving US-based Ruby Canyon Environmental and Colombian intermediary Masbosques, was accused of being imposed illegally on indigenous communities, AFP News reported last week.
Carbon credits are sold to corporations or countries to offset greenhouse gas emissions by funding forest preservation or similar projects, with proceeds intended to benefit local communities protecting these areas.
In this case, $3.8 million worth of credits were sold to Colombian firm Latin Checkout, which then sold them to US airline Delta.
Delta faces a lawsuit for allegedly “greenwashing” by claiming carbon neutrality through questionable offsets.
The contested agreement, signed in March 2021, required indigenous communities to preserve 7,100 sq km (2,741 sq mi)—an area comparable to Puerto Rico.
However, the tribes argued that false representatives had signed the deal, violating their rights to territorial autonomy and self-government.
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The court has now mandated that the tribes’ legitimate representatives meet within six months to decide whether to authorize a new agreement.
If no agreement is reached, the authorities must ensure the project is terminated in the territory.
The ruling highlights growing skepticism about the effectiveness of carbon credits, AFP News said.
Recent research has shown that claims of emissions reductions are often exaggerated or even nonexistent.
In late 2023, AFP explored the remote Pira Parana region, accessible only by costly private flights or lengthy boat trips.
Local leaders expressed regret over the deal, noting it caused community conflicts and eroded indigenous autonomy despite an economic windfall.
Indigenous leader Fabio Valencia criticized the project for its spiritual and physical contamination.
Experts have also questioned the existence of any real deforestation threat in the area, suggesting no actual emissions savings were achieved.
According to AFP News, this case marks a significant precedent in Colombia’s legal landscape.
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