Brazil’s Piauí state has taken a bold step in the fight against deforestation with a pioneering carbon credit program launched on July 8, 2025. Distinct from conventional private-led efforts, this initiative is governed by the public sector and actively involves local communities—an approach designed to prevent the mere displacement of deforestation activities to other areas . Under a collaboration involving Investe Piauí, investment firm Silvania (backing the project with 10–20 million reais), Geonoma, and Systemica, the program aims to slash deforestation by at least 10% annually. If successful, it could generate more than 20 million carbon credits by 2030, supplying much-needed transparency and accountability in carbon offsetting efforts. According to Governor Rafael Fonteles, this is “about protecting our forests and creating sustainable opportunities for communities”.

That said, carbon credits have come under scrutiny in Brazil’s Amazon for potential greenwashing and weak enforcement. A recent Reuters investigation revealed that many carbon-offset projects were historically linked to individuals previously fined for illegal logging. These cases underscore the risks that carbon credit schemes—even well-intentioned ones—can inadvertently support harmful practices. To maintain credibility, Piauí’s initiative must prioritize rigorous oversight, transparent monitoring, and strong community engagement. As the EU considers allowing these credits to contribute to national emissions targets, success here could set a benchmark for jurisdictional-scale programs, balancing environmental protection, social development, and market integrity.