Brazilian lawsuit over forest carbon trading deal throws a wrench into Norwegian-funded initiative

News September 10, 2025 / By: Ann Danaiya Usher

The Brazilian Federal Prosecution Service is suing the state government of Pará, host of the upcoming COP30 climate summit, for damages to indigenous communities caused by a forest carbon purchase agreement worth USD 180 million. Norway has funded much of the architecture that has facilitated the deal, which was meant to provide a first “proof of concept.” The lawsuit now casts a shadow of uncertainty over this endeavour.

Felipe Palha - Pará and Fernando Merloto Soave photo by Yasmim Bitar - MPF comms.jpg — Felipe de Moura Palha, Federal Prosecutor in Pará (right) and Fernando Merloto Soave, Federal Prosecutor from the state of Amazonas, at the launch of the advisory document for federal public prosecutors on the carbon credit market in Belém, May 22, 2025 (Photo: Yasmim Bitar / Office of the Federal Public Prosecutor in Pará)

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Brazilian lawsuit over forest carbon trading deal throws a wrench into Norwegian-funded initiative

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