PRESS RELEASE: Respira agrees five year deal with Toroto for Conhuás project in Mexico to fund the removal of more than two million tonnes of carbon

• • Respira International announces landmark agreement with community-based forest restoration project in southeastern Mexico.

• • The Conhuás project removes around 300,000 tonnes of CO2 from the atmosphere annually.

London, 19 September 2024 – Respira International, the impact-driven carbon finance business, has today announced a major deal with the project developer Toroto and the Conhuás ejido community on a forest restoration initiative in southeastern Mexico.

The agreement will see Respira purchase all credits issued by Conhuás for the next five years (starting later in 2024), with the option to extend for an additional two years. The project is expected to issue around 300,000 carbon removal credits per year.

The Conhuás initiative covers a project area of more than 58,000 hectares in the Campeche province of southeastern Mexico. By restoring and conserving native trees, each year the Conhuás project removes over 300,000 tonnes of carbon that would otherwise remain in the atmosphere.

The land is owned by the Conhuás ejido (the name for community-held land in Mexico), which has an agreement with project developer Toroto to restore forest native to the Mesoamerican Biological Corridor, identified by the World Resources Institute as a key ecological zone.

In addition to forest restoration, the project will also provide community funding to prevent illegal wood harvesting and the conversion of land for agriculture. It will also support ‘beyond carbon activity, such as the protection of native wildlife – including tapir, jaguar, toucan and puma – and the building of eco-villas.

Certified by the Climate Action Reserve (CAR), the project benefits almost 900 people who live in the ejido and will receive most of the carbon revenues received by Toroto.

As part of the deal, Respira will guarantee a floor price for each credit, as well as a profit share agreement. This will provide the project and communities with operational and cashflow certainty for the long term, ensuring all parties benefit from upside.

Ed Hewitt, Natural Climate Solutions lead at Respira, comments: “This is an incredibly exciting announcement. Not only is this a great example of a community-run, nature-based carbon dioxide removals project, but when I was in Conhuas during our DD site visit, what struck me most was the democratic nature of the process. I witnessed first hand the terms of the deal we proposed to Toroto being agreed by the Conhuas ejido through a community meeting and subsequent vote from over 100 members. This is indicative of the democratic community based governance model employed to make decisions on all aspects of the project which I found hugely impressive.

“Our deal means the project can plan with long term financial certainty through the guaranteed credit floor price, as well as benefit from upside profit sharing in the event prices rise. What’s more, the revenue sharing agreement between Toroto and the ejido is one of the fairest to communities I’ve seen in the industry. This is good news both for the ejido members and also for the preservation of a key biological corridor capable of removing hundreds of thousands of tonnes of carbon dioxide from the atmosphere annually.”

Eduardo Damián Oliveros, Landowner and Community Technician at the Conhuás Project,comments: “Something we really liked about the offer is that it’s a five year deal. This long-term commitment motivates us to take better care of our forest because it guarantees something we’ve never benefited from before. And it’s not just going to benefit the landowners, but the entire community, as the revenue will be invested locally and generate jobs. I think the project is magnificent. Personally, I had the opportunity to be part of the entire process, and we are very happy and excited about what’s coming next.”

José Reyes, Sales and Project Development Director at Toroto, comments: “The most rewarding aspect of this agreement was presenting the offer to the Conhuás community. Witnessing their enthusiasm and excitement and hearing their plans for both the project and their own personal improvements was truly inspiring. This project’s unique strength lies in its seamless integration of climate action and social development. By empowering the community and providing them with the resources they need to succeed, we’re creating a sustainable model that can be replicated in other regions.

“Conhuas’ project impacts go beyond just climate or environmental benefits; they foster economic development, enhance local livelihoods, and promote social cohesion, creating comprehensive improvements for the communities involved.

“This announcement marks a significant milestone for Toroto as our first long-term offset agreement, securing a stable revenue stream for both the community and the environment. The revenue-sharing mechanism ensures that the project can benefit from a possible rising carbon market, further strengthening its financial sustainability.

“This is an example of how investing in community-led initiatives can address multiple challenges simultaneously and create a more equitable and sustainable future in the Global South.”

ENDS 

View the project page on our website here.