Mombak leader advocates for a carbon market with minimal government intervention to attract investment.
Mombak, one of the prominent Brazilian companies in the carbon removal sector, is calling for a less interventionist approach from the government regarding the regulated carbon credit market.
According to Gabriel Haddad Silva, CEO and co-founder of the company, the uncertainty caused by excessive regulation could deter investors, increase service costs, and consequently hinder the development of the sector in Brazil.
The company, which focuses on reforesting degraded areas in the Amazon, has been investing heavily in carbon capture projects, planting millions of trees and managing thousands of hectares in Pará.
Mombak’s vision is clear: a freer market with limited state interference is crucial for sustainable growth and for attracting the capital needed to expand operations and meet ambitious carbon sequestration targets.
This statement comes at a sensitive time for the regulation of the Brazilian Greenhouse Gas Emissions Trading System, which is expected to take effect following the 2024 legislation. The system is still awaiting crucial definitions for its operation, which will directly impact the country’s ability to trade carbon credits internationally in compliance with the Paris Agreement.
Regulation Under Debate and Its Business Impact
The debate surrounding the regulation of the carbon market in Brazil is intensifying due to government proposals that seek to restrict credit exports—a measure that has caused concern within the business community.
While these restrictions aim to ensure that domestic climate goals are met, they could compromise the country’s appeal to foreign investors and the competitiveness of Brazilian companies.
Mombak, which already has a predominantly international client base, warns of the risk of limiting growth potential and the ability to raise essential funds that exceed the capacity of the voluntary market.
The company emphasizes the importance of an open dialogue with the government to define rules that foster the sector rather than limiting it.
The expectation is that, regardless of the administration, the strategic nature of the carbon market will be recognized, boosting investment in innovative, high-quality environmental solutions that are fundamental to the global energy transition.
Market Confidence in Validated Credits
Recently, Mombak achieved the validation of its first carbon credits by the British certifier Isometric, a milestone that demonstrated the strong demand for pre-certified carbon removal assets.
This achievement validated the company’s reforestation protocol, which is based on planting native species, and attests to the quality and security of its projects.
In a global landscape where trust in the carbon market has been shaken by reports of fraud, the ability to offer credits with minimized execution risk has proven to be a competitive advantage.
The company plans to raise more capital and diversify its client base, attracting sectors beyond technology.
This strategy aims to reduce dependence on the voluntary market and ensure the sustainability of its business in a volatile global environment, where the urgency for effective climate solutions is growing, yet the supply of high-quality carbon credits remains scarce.
Mombak is positioning itself as a key player in this scenario, with the potential to establish Brazil as a leader in the carbon removal industry.
