The World Bank, through its leading arm, International Bank for Reconstruction and Development (IBRD), has issued a 9-year bond worth USD 225 million. This bond supports carbon removal by funding reforestation in Brazil’s Amazon rainforest.
Unlocking the World Bank’s Carbon Removal Bond
Jorge Familiar, Vice President and Treasurer, World Bank, noted,
“A variety of partners and financing tools are needed to support the Amazon and help the people there pursue better livelihoods, protect its incredible biodiversity, and safeguard its global role in mitigating climate change.”
Notably, this is the largest bond issued by the World Bank to date, directly linked to reforestation efforts in the Amazon and promising fantastic returns. As mentioned in the press release, investors will earn a return through a fixed coupon and a variable component tied to Carbon Removal Units (CRUs). Additionally, the reforestation projects in Brazil will generate these credits.
Furthermore, investors hail this bond as unique. This means it connects their financial returns to actual carbon removal, unlike previous bonds tied to carbon credit sales from emission avoidance.
The key feature of this bond is that ~ USD 36 million will support Mombak, a Brazilian company. Mombak will use the funds to reforest land in the Amazon with native trees, boosting biodiversity and supporting local communities. This bond introduces an innovative approach to mobilizing private capital for reforestation finance.
Their Carbon Credits Boost Global Markets
Last year, the World Bank unveiled its plans to expand high-integrity global carbon markets, helping 15 countries generate income by preserving their forests. To name a few, Chile, Costa Rica, Ghana, and Indonesia were the participating countries. The bank expects these nations to generate over 24 million carbon credits in a year, potentially earning up to $2.5 billion by 2028.
The initiative is led by the World Bank’s Forest Carbon Partnership Facility (FCPF), focusing on environmental and social integrity. Since 2018, the FCPF has pioneered carbon-crediting systems, ensuring credits are unique, measurable, and permanent. Third parties rigorously monitor and verify these credits based on World Bank standard.
Can this Bond Bring High Returns and Save the Amazon Rainforest?
Jorge Familiar has been assertive of this historic transaction. He believes it demonstrates eagerness of private investors to link their financial returns to positive outcomes in the Amazon. Additionally, the promising returns signal rising interest in this structure and the growth of supported sectors.
Essentially, the bond is 100% protected, ensuring investors’ money is safe. The USD 225 million raised will fund the World Bank’s global sustainable development efforts. Instead of receiving full regular interest payments, investors will allow a portion to support Mombak’s reforestation projects through a deal with its hedge partner HSBC. Moreover, these projects align with the World Bank’s goals in the Amazon but are not funded by IBRD loans.
The Carbon Removal Units (CRUs) generated by these projects will be sold, and a share of the revenue will be paid to bondholders as CRU Linked Interest. In addition, investors will receive a guaranteed minimum interest payment. If the projects succeed as expected, bondholders could earn more compared to similar World Bank bonds.
Greg Guyett, CEO of Global Banking & Markets, HSBC commented,
“We are pleased to work alongside the World Bank on this innovative bond which aims to support the reforestation of thousands of hectares of the Brazilian Amazon rainforest. We are committed to helping our clients fund sustainable development projects that make a difference in the climate challenge. It was a privilege for HSBC to structure the transaction and act as sole lead manager on the World Bank’s largest-ever outcome bond issuance to date.”
Bolstering Investors’ Confidence
Prominent investment partners include Mackenzie Investments. T Rowe Price, Nuveen, Rathbone Ethical Bond Fund, and Velliv.
Investors consider this bond to have the potential for attractive financial returns with measurable positive impacts. They expect significant benefits through carbon removal, biodiversity enhancement, and job creation.
Hadiza Djataou, Vice President, Portfolio Manager, Fixed Income, Mackenzie Investments has significantly remarked,
“This transaction, in partnership with Mombak, offers a landmark opportunity in nature positive investment while supporting land stewardship principles. We believe the bond’s unique structure will prove to be both a strong investment and a catalyst for further innovation in the sustainable fixed-income market.“
Decoding World Bank’s Interest in Brazil
GHG emissions in Brazil surpassed 2.3 billion MtCO₂e in 2022, a decline of over 8% in comparison to the previous year. The country’s climate-aligned investments are expected to total $2-3 trillion by 2050. Brazil’s latest climate report predicted this.
Source: Brazil 2024 Climate Report
Interestingly, AP news revealed that in 2022, Amazon trees held 56.8 billion MtCO₂e, making the Amazon a huge carbon sink. However, climate experts have shown a red flag over the ongoing deforestation that could shift the Amazon from a carbon sink to a carbon source. This is one of the reasons why Brazil has become a hot spot for environment preservation activities, particularly the Amazon rainforest.
Speaking of Brazil, the World Bank’s connection with the country is not something new. In 2022, it analyzed how Brazil could meet its climate goals and backed innovative projects. It included a whopping US$ 500 million Climate Finance Solution. This initiative aimed to expand sustainability-linked finance and help the private sector access the carbon credit market.
The World Bank announced the Amazon reforestation bond on June 14. They initially left the exact principal value undecided but have now confirmed it.
- FURTHER READING: World Bank Pays Vietnam Over $51 Million in Carbon Credits
The post Record-Breaking $225M World Bank Bond Funds Amazon Reforestation appeared first on Carbon Credits.
The uranium price has continued its upward trajectory this week, climbing to 85.67 USD. This represents a solid 2.19% gain over the last seven days and extends the year-to-date performance to a 5.09% increase. After a period of consolidation, the market is witnessing renewed momentum driven by the converging forces of a widening supply deficit and escalating energy demands from the technology sector.
Uranium Price
Market Drivers for the Uranium Price
The primary catalyst behind the recent movement is the intensifying focus on nuclear energy as a critical solution for powering artificial intelligence (AI) infrastructure. As data centers expand globally, tech giants are increasingly seeking reliable, carbon-free baseload power, prompting a reassessment of long-term demand. Recent reports indicate that major utilities are accelerating their contracting cycles to secure fuel inventory, anticipating a squeeze as new reactors come online in Asia and dormant facilities restart in Japan.
On the supply side, geopolitical friction continues to tighten the market. Persistent restrictions on Russian nuclear fuel imports have forced Western utilities to pivot toward alternative suppliers, creating bottlenecks in conversion and enrichment services. Additionally, recent activity from physical funds—most notably a reported purchase of 100,000 pounds of yellowcake by Sprott—has removed spot inventory, adding immediate upward pressure to the uranium price.
Technical Outlook
Technically, uranium has firmly established support above the psychological $80 level. The breakout above $85 signals bullish sentiment, with analysts eyeing the $90 mark as the next key resistance zone. The 30-day movement of 8.27% suggests that buyers are stepping in aggressively on dips, reinforcing a strong uptrend. If the price can sustain a close above $86, it may open the door for a retest of the cyclical highs seen in previous years. However, investors should remain attentive to upcoming production reports from major miners like Kazatomprom and Cameco, which could introduce short-term volatility.
The post Uranium Price Today: AI Power Demand and Supply Deficits Fuel Rally appeared first on Carbon Credits.
The Lithium Price surged to a fresh two-year high today, closing at 170,999.81 CNY per tonne. This marks a significant 7.55% gain over the last seven days and extends a powerful year-to-date rally of 44.38%. After a prolonged period of consolidation, the battery metal has broken critical resistance levels, driven by a convergence of aggressive policy shifts in China and renewed supply constraints.
Lithium Price
Market Drivers for the Lithium Price Rally
The primary catalyst for this week’s 7.55% move is the sudden tightening of supply in China’s Jiangxi province. Authorities have canceled 27 mining permits in the hub as part of an environmental "anti-involution" campaign, effectively removing significant feedstock from the market. This supply shock coincided with Beijing’s announcement that export tax rebates for battery products will be cut from 9% to 6% starting in April. This policy shift has triggered a massive "front-running" effect, with manufacturers rushing to secure raw materials and export finished goods before the deadline.
Adding fuel to the fire, industry giant CATL reportedly placed a massive $17.2 billion order for cathode materials earlier this week. This demand signal has forced downstream players to cover spot positions aggressively, exacerbating the squeeze created by the Jiangxi permit cancellations.
Technical Outlook
Technically, the Lithium Price has staged a decisive breakout above the psychological 170,000 CNY level. The 30-day movement of 71.86% suggests the market is in a steep markup phase, fueled by short covering and panic buying. Momentum indicators are currently in overbought territory, but the fundamental supply deficits suggest support remains strong at the 155,000 CNY breakout zone. If the rally sustains, the next key resistance target lies near 200,000 CNY, a level not seen since the market began its correction two years ago.
The post Lithium Price Today: China’s Supply Crackdown and Tax Overhaul Fuel 7% Rally appeared first on Carbon Credits.
The Lithium price continued its explosive start to 2026, surging to 170,999.81 CNY per tonne on Friday. The battery metal has posted a remarkable 7.55% gain over the last seven days alone, extending a massive 71.86% rally over the past month. Year-to-date, lithium prices are up 44.38%, marking a definitive reversal from the surpluses that plagued the market in previous years.
Lithium Price
Market Drivers
Two primary factors are fueling the current rally: a surge in utility-scale energy storage demand and sudden supply constraints in China’s mining hubs.
- Energy Storage Demand Spike: While EV sales remain steady, the demand for lithium iron phosphate (LFP) batteries in energy storage systems (ESS) has outperformed expectations. Analysts forecast a 55% growth in ESS installations for 2026, driven by Beijing’s mandate to double EV charging capacity and grid storage infrastructure by 2027.
- Jiangxi Supply Crunch: On the supply side, Chinese authorities recently canceled 27 mining permits in the lithium hub of Jiangxi as part of an environmental crackdown. This follows the suspension of operations at CATL’s Jianxiawo mine, effectively removing significant monthly tonnage from the market just as downstream battery makers rush to restock ahead of reduced export rebates.
Technical Outlook
Technically, the Lithium price has decisively broken through the psychological resistance level of 150,000 CNY. The steep vertical ascent suggests intense buying pressure, likely exacerbated by short covering from traders who were positioned for a surplus. With the price now firmly establishing support above 160,000 CNY, market participants are eyeing the 200,000 CNY level as the next major target. However, the Relative Strength Index (RSI) indicates the metal is in overbought territory, suggesting potential volatility in the short term as the market digests these rapid gains.
The post Lithium Price Today: Energy Storage Boom and Supply Cuts Ignite 71% Rally appeared first on Carbon Credits.
Uranium Price Today: AI Power Demand and Supply Deficits Fuel Rally
Lithium Price Today: China’s Supply Crackdown and Tax Overhaul Fuel 7% Rally
Lithium Price Today: Energy Storage Boom and Supply Cuts Ignite 71% Rally
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