- $17.8M Deal: Mombak secures funding from Santander and BNDES—the first reforestation project under Brazil’s R$10B New Climate Fund.
- Scaling Carbon Removal: With 45,000 acres under management and 8M trees expected by June, Mombak targets massive expansion in the carbon credit market.
- Institutional Backing Grows: Major banks and corporations like Microsoft, Google, and McLaren are validating Brazil’s carbon offset potential.
Reforestation startup Mombak has closed a R$100 million ($17.8 million) deal with Santander Brasil and Brazilian development bank BNDES to scale its Amazon restoration efforts. The agreement marks the first reforestation project backed by Brazil’s R$10 billion New Climate Fund.
The fund, launched in 2023, was designed to unlock capital for climate-related ventures. Santander is acting as financial intermediary for this groundbreaking transaction—signaling private-sector confidence in Brazil’s emerging carbon market.
“There is a challenge between getting this approval and actually being able to use the capital. We are reaching a very important milestone,“ said Mombak co-founder Gabriel Silva.
Mombak restores degraded farmland in the Amazon, either through acquisition or partnership, by replanting native species to generate carbon credits. The company now manages 45,000 acres—triple the size of Manhattan—and expects to have planted 8 million trees by June.
The startup has already signed $150 million in carbon removal offtake contracts with Microsoft, Google, and McLaren, and CEO Peter Fernandez expects that figure to triple or quadruple this year.
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Despite growing momentum, Brazil’s carbon market faces capital constraints. Firms often struggle to obtain financing, as investors still perceive the sector as risky. This new structure could shift that narrative.
“This is the role of a development bank. We are taking the initiative,“ said BNDES director Tereza Campello.
“This deal shows the market is viable and that not only BNDES believes in it, but other financial institutions too.”
BNDES had previously offered Mombak a credit line of up to R$160 million but required a financial agent to provide guarantees—prompting Santander’s involvement.
Santander’s head of sustainability, Leonardo Fleck, said Brazil’s carbon market is evolving rapidly:
“Capital is flowing, companies are planting and getting offtake contracts with large global firms. I see it a lot like a puzzle—you start to fit the pieces together.“
With nearly 60% of the Amazon within its borders, Brazil is poised to lead the global carbon offset market—and this deal could be the catalyst.
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