The project involves the ecological recovery of 1,300 hectares in eight municipalities in the south of Bahia, using more than 100 native species and selling high integrity carbon credits;

The initiative is strategic for the protection of endangered species such as the yellow-breasted capuchin monkey, the golden-faced lion tamarin, the sloth and the brazilwood;

The National Bank for Economic and Social Development (BNDES) has approved funding of R$87.2 million for a project that will restore, in a first stage, 1,300 hectares of Atlantic Forest - the equivalent of 1,800 soccer fields - in eight municipalities in the south of Bahia, with more than 2 million seedlings of trees native to the biome.

The BNDES funds come from the Climate Fund, linked to the Ministry of the Environment and Climate Change (MMA), which supports initiatives to mitigate the effects of climate change, such as the conservation, recovery and responsible management of forests with species native to Brazilian biomes.

The project, named Muçununga after an ecosystem that only occurs in this region of the Atlantic Forest, will be implemented by Biomas and Carbon2Nature Brasil - Neoenergia'sjoint venture with Carbon2Nature, owned by the Spanish group Iberdrola - in areas owned by Veracel Celulose.

As it is entirely focused on restoration with native species, the project will contribute to tackling the climate and biodiversity crises and will generate income and employment opportunities and other social benefits in the region. High integrity carbon credits will also be generated, with greater market value, which will be the project's source of income. The initiative is expected to generate approximately 500,000 carbon credits over 40 years.

One of the distinguishing features of the Muçununga Project is the high diversity of native species used in the restoration of the area: there are more than 100 species, contributing to the strengthening and resilience of ecosystems. This level is well above the global average - a survey by MSCI Carbon Markets indicates that only 1% of native restoration projects aimed at generating carbon credits use more than 10 species. The benefited areas are spread across the municipalities of Belmonte, Eunápolis, Guaratinga, Itagimirim, Itapebi, Mascote, Potiraguá and Santa Luzia.

The project adopts the concept of stepping stones, in which the various polygons of native vegetation recreated by forest restoration act as connecting points in a very fragmented landscape. This action is strategic for the recovery of the Atlantic Forest in this region, by recreating habitats and facilitating connections for endangered species such as the crejuá (Cotinga maculata), the yellow-breasted capuchin monkey (Sapajus xanthosternos), the golden-faced lion tamarin (Leontopithecus chrysomelas), the northern muriqui (Brachyteles hypoxanthus), the southeastern curassow (Crax blumenbachii), the sloth (Bradypus torquatus) and the brazilwood (Paubrasilia echinata).

"Recovering and protecting biodiversity is essential for dealing with extreme climate events. Restoring the Atlantic Forest, one of the richest biomes in the world and one of the most degraded in the country, is key to a better quality of life in these territories.Reviving the forest with attention to the needs of local communities, generating jobs and income, is the Bank's main objective in supporting this project, following President Lula's determination," said BNDES President Aloizio Mercadante.

"The BNDES Climate Fund is a decisive instrument for enabling the financial sustainability of large-scale forest restoration projects in Brazil.The financing of the Muçununga project reinforces the consistency of Carbon2Nature and Neoenergia's model and allows us to accelerate our pipeline of initiatives and investments in the country, expanding the removal of emissions, the preservation of biodiversity and the generation of relevant social benefits for local communities, such as employability and the strengthening of community organization," said Neoenergia's CEO, Eduardo Capelastegui.

According to the executive, the project is a clear demonstration of the company's commitment to expanding environmental benefits and quality of life, especially in regions where Neoenergia operates, such as the state of Bahia - where the company operates in energy distribution, generation and transmission.

"The BNDES' support, through the Climate Fund, is decisive in making forest restoration projects in Brazil viable and scalable. Like infrastructure, this sector is capital-intensive and requires long-term financing. The country has unique assets: rich biodiversity, technical expertise in planting forests and a large amount of land suitable for restoration.In this context, appropriate financial mechanisms are essential to consolidate the country as a global benchmark in nature-based solutions," says Fabio Sakamoto, CEO of Biomas.

The Muçununga Project also aims to generate shared value for the surrounding communities, who have actively participated in the collective construction of the initiatives through collaborative workshops. In all, 14 local communities will benefit from actions aimed at well-being, income generation, infrastructure improvement and community strengthening, among other fronts. This commitment to people reinforces the role of ecological restoration as a solution capable of combining climate, environmental and social benefits in an integrated way.