Exposed: How Carbon Credit Projects Are Hiding Illegal Logging in Brazil

A new Reuters investigation reveals how illegal logging operations in Brazil have infiltrated the global carbon credit market, using conservation projects to disguise deforestation on protected lands.

The report analyzed dozens of rainforest protection projects and found that many were linked to landowners or developers previously penalized for environmental violations. In some cases, carbon credits were issued for areas based on fraudulent land claims, and were later used to launder timber cut from Indigenous lands or public forests.

These credits were then sold on the international market to companies seeking to offset their carbon emissions. While marketed as tools to fight climate change, many of these projects appear to be facilitating land grabs and greenwashing.

Local Indigenous leaders expressed concern, saying forest destruction never stopped, even as outside groups promoted carbon offset programs. Experts warn the credibility of voluntary carbon markets is at risk unless stronger oversight is implemented.

With billions of dollars flowing into carbon credits globally, the findings raise serious questions about accountability and environmental justice.