The Walt Disney Company has purchased $3.5 million dollars’ worth of carbon credits generated via rainforest conservation in Peru, reports Point Carbon.
Disney bought 437,000 VCUs (verified carbon units) issued by the Alto Mayo Initiative, a project that aims to protect 2.8 million hectares of tropical forest in northeastern Peru. Alto Mayo is a joint initiative run by the Peruvian government and Conservation International.
The credits are generated by reducing emissions from deforestation and forest degradation in San Martin province.
Rainforest in the Peruvian Amazon
The $7-8 price per ton of carbon dioxide is substantially higher than the market for regulated offsets under the Clean Development Mechanism (CDM). CDM credits are currently trading for $0.42 per ton in the secondary market.
Disney’s purchase represents more than a fifth of the credits that will be generated by the Alto Mayo project. Disney plans to “retire” the credits it buys as part of its effort to become carbon neutral.
Point Carbon also reported that Latam Airlines, Latin America’s largest air carrier, purchased 7,000 VCUs from a reforestation project run by REDD+ developer Bosques Amazonicos in Peru’s province of Ucayali.