DFC Approves $37 Million for Mombak’s Reforestation Projects in the Amazon

São Paulo, 21 November 2024: The U.S. International Development Finance Corporation (DFC) has committed a $37 million loan to Mombak to expand the company’s sustainable forestry in Brazil. New forests will be planted in municipalities in the Brazilian Amazon, creating direct and indirect jobs, strengthening the reforestation value chain in the region and in Brazil, and restoring some of the most degraded areas of the Amazon.

The initiative aims to restore degraded areas in critical ecosystems, significantly impacting environmental conservation and sustainable development. Mombak’s operation focuses on the state of Pará, and planting will be conducted using native biodiverse species.

This investment is a part of DFC’s growing portfolio of nature-based solutions, an area where the agency has established itself as an innovator. DFC has deployed its range of tools, from political risk insurance and loans to technical assistance and equity investments, into the sector. DFC is focusing on nature-based solutions as a key tool in ongoing work to sequester carbon, strengthen communities against the worst effects of climate change, and protect fragile ecosystems.

With three farms in Pará so far, the project provides co-benefits, helping to reverse biodiversity loss, improve water quality, and positively impact the communities where it operates. Mombak’s reforestation will be 100 percent native species, providing habitat for numerous plants and animals, restoring local hydrological cycles, and creating more jobs per hectare than the cattle pasture it replaces.

Mombak has already raised over $150 million to invest in Amazon biome restoration projects. Over 3 million trees have already been planted on Mombak’s first farm, in operation since April 2023, in the municipality of Mãe do Rio, Pará – creating direct and indirect jobs, strengthening the local economy, and enhancing the reforestation value chain.

Furthermore, through a model of rural partnerships with cattle ranchers, other degraded areas are also being restored in municipalities across Pará. In addition to the positive environmental impacts, reforestation will enable the generation of carbon credits for the international voluntary market, aligning with UN Sustainable Development Goals No. 13 (Climate Action) and No. 15 (Life on Land).

About Mombak:

Mombak (“To Awaken” in Tupi-Guarani) was founded in 2021 by Peter Fernandez (former CEO of 99) and Gabriel Silva (former CFO of Nubank). With a background in innovation, they joined forces to tackle one of the world’s most pressing challenges: climate change. With clients including Microsoft, Google, and McLaren Racing, Mombak has attracted major global investors to support carbon removal and mitigate climate change. For more information, visit the website or connect on LinkedIn.

About DFC:

The U.S. International Development Finance Corporation (DFC) is the U.S. Government’s development finance institution. DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. We invest across sectors including energy, healthcare, infrastructure, agriculture, and small business and financial services. DFC investments adhere to high standards and respect the environment, human rights, and worker rights.

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Via U.S. Embassy & Consulates in Brazil