Agropecuaria Santa Genoveva wishes to obtain additional economic benefits in order to maintain and expand its reforestation activities with Teak in degraded areas with the intention of promoting local development through the commercialization of wood from native and introduced species. In order to do so, the company wanted to understand the potential of these lands for the generation of carbon credits (“carbon bonds”), which would provide the additional income to ensure the continuity of these plantations. Projects that generate carbon bonds publicize to the international community in a transparent and verifiable way the efforts that a company makes to mitigate greenhouse gas (GHG) emissions and contribute to sustainable development. Given the nature of the project and the management necessary for the generation of carbon credits, South Pole developed a feasibility study, and after that, supported the development of the forestry carbon project: “Reforestation with Teak - CO2e TEAKMEX”. The project is an ARR grouped reforestation carbon project based on the planting of Tectona grandis. The region of expansion of the grouped project covers the states of Tabasco, Chiapas, and Campeche in the United States of Mexico. Within these states, the project area of the first instance spans 4,011.96 ha1 across five municipalities: Balancán (Tabasco), Huimanguillo (Tabasco), Tenosique (Tabasco), Palenque (Chiapas), and Candelaria (State of Campeche). These municipalities are all rural, and extensive livestock farming is the primary land use, followed by agriculture.

The project is driving significant economic development in a sustainable way by creating new jobs for local people, training them in forest management and creating a supply chain of teak wood. As the trees grow not only do they sequester carbon dioxide, helping to mitigate global warming, by biodiversity, soil quality and water conservation are enhanced.