Carbon finance business Respira International has signed an agreement with project developer Toroto to fund carbon removal activities in the Conhuás forest restoration initiative in Mexico.
As part of the deal, in the following 5 years, Respira will purchase all the carbon credits issued by the activities of Conhuás, which are estimated to be around 300,000 credits per year.
The agreement also includes the option to extend the partnership for another two years.
Respira will provide a floor price for each credit, along with an agreement for profit share, enabling long-term cashflow certainty for both the project and its community, making sure all parties involved benefit from the upside.
Located in the Campeche region in south-east Mexico, the Conhuás initiative works on conserving and restoring trees identified as native to the Mesoamerican Biological Corridor, a zone declared of vital ecological importance by the World Resources Institute.
The project covers more than 58,000 hectares of land owned by the local Conhuás ejido community, who are partnering with project developer Toroto on their forest restoration operations.
The restoration and conservation activities of the Conhuás project result in more than 300,000 tonnes of CO2 removed from the atmosphere every year. The impact of the initiative extends beyond decarbonization, as they also contribute to wildlife protection, safeguarding species like tapirs, jaguars, pumas, and toucans.
Additionally, Conhuás constructs eco-villas and provides funding to the local community in an attempt to prevent illegal wood harvesting and agricultural exploitation of the indigenous land.
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Set to begin with carbon credit purchases towards the end of 2024, the deal with Respira will bring direct benefits to nearly 900 residents in the Conhuás region, who will receive carbon revenues through Toroto.
Commenting on behalf of Respira, Ed Hewitt, Lead of Natural Climate Solutions, shared that during a DD site visit to Conhuás, he witnessed a democratic process of decision-making in the community, where over 100 residents voted in favor of the deal proposed by Toroto.
He added that the revenue sharing agreement between Toroto and Conhuás is one of the fairest in his experience, which is a positive sign for the future of this crucial biological corridor, capable of removing significant amounts of carbon every year.
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