The state of Piaui in Brazil intends to implement carbon credits to safeguard its rainforest.

The Brazilian state of Piaui announced on Tuesday that it will generate carbon credits in exchange for measures to fight deforestation, boosting support for other local initiatives aimed at safeguarding the nation’s rainforest.

Brazil is working to uphold its commitment to reduce emissions as it gets ready to host the upcoming global climate talks in November in the Amazonian city of Belem. In contrast to conventional forest protection initiatives suggested by private landowners, Piaui is emphasizing public sector initiatives that engage government and local communities, aiming to address a more extensive area to prevent merely moving the site of deforestation. Comparable projects, termed jurisdictional, are in progress in the states of Tocantins and Para.

As part of an agreement revealed on Tuesday, Investe Piaui, the mixed economy company of the state, has reached a deal with investment company Silvania to offer 10-20 million reais ($3.69 million) to support the programme’s development.

The Brazilian company Systemica will assist with the technical elements of the program, while Silvania will serve as an offtaker for the credits. The programme’s development will be led by environmental services firm Geonoma.

According to the group, if Piaui reduces deforestation by 10% each year, it could produce over 20 million credits by 2030 to sell to nations and businesses to assist them in achieving their emission reduction goals.

In certain instances, carbon credits have not provided the environmental advantages they promised, yet they may gain significance as political commitment to climate action wanes and governments prioritize immediate expenses, even in light of unprecedented temperatures and other severe weather attributed to human behavior. Last week, the European Union introduced, for the first time, an EU climate target that permits countries to utilize carbon credits from developing nations to fulfill a restricted portion of their emissions objectives.