Brazil has reached a new milestone in the carbon markets with the country’s first issuance of soil carbon credits under Verra’s VM0042 methodology, a development that signals growing momentum for agriculture-based removals in emerging markets.
Close-up of rich soil and sprouts on a sustainable farm near Brazil’s Atlantic Forest. AI generated picture.
The project, which generated 5,623 carbon removal credits spanning vintages from 2019 to 2023, follows a grouped structure that brings together farms across diverse biomes—Atlantic Forest, Caatinga, Cerrado, and Pampas. Its long-term goal is to scale up to 150,000 hectares and reach an annual issuance capacity of 300,000 credits.
‘It's a very big project, and it covers practically the entire agricultural region of Brazil’, said Alexandre Leite, CEO and co-founder of the company behind the initiative, in an interview.
This is only the third project globally to issue credits under Verra’s VM0042 protocol—also known as the Methodology for Improved Agricultural Land Management (ALM)—making it a point of interest for buyers from sectors including technology, oil and gas, and agribusiness.
‘The main buyers of the market are the big tech companies. Major oil companies also have an interest’, said Leite. ‘And the companies in agriculture and food [sectors] also have a lot of interest, especially when they are part of the supply chain.’
Soil carbon credits under VM0042 are seen as a cost-effective alternative to other agricultural removal methods, such as biochar, and compete with more established offsets like afforestation and blue carbon. However, low liquidity continues to complicate pricing.
Read more: Carbon credit price guide: Understanding spot, forward, and market factors
Indicative offtake agreements for yet-to-be-issued credits show prices ranging from $15 to over $100 per tonne of CO₂ equivalent. For context, premium ARR projects using native Brazilian species are valued around $55/tCO₂e, while Indigo’s US-based soil carbon credits under a different registry sell for $60–$80/tCO₂e. Biochar projects in the region reach up to $111/tCO₂e. ‘When I look at ARR and blue carbon, I think that the ALM has to start with at least $50/tCO₂e’, Leite said.
Brazil’s untapped potential is considerable: nearly 28 million hectares of degraded land could be restored for productive use without clearing forests. With its tropical climate and advanced farming systems, the country is positioned to become a leader in soil carbon removals.
‘Brazil has the most sophisticated agriculture in the world’, Leite noted. He pointed to practices such as multiple crop rotations and livestock integration as factors that naturally boost soil carbon levels. ‘It is good for rural producers and it's good for the climate’, he added.
Read more: 10 million mangroves planted in landmark project in Mozambique
As agriculture-based carbon methodologies gain traction, the spotlight is shifting towards credits that offer more than emissions reductions—they regenerate ecosystems and strengthen local economies. At DGB Group, we’re advancing this movement by developing large-scale, nature-based projects that turn degraded land into thriving habitats, delivering high-integrity carbon units rooted in transparency and long-term value. Now is the time to align your investments with restoration—explore how your business can lead the change.
