ReforesTerra Grouped Project

Audit Analysis

The ReforesTerra Grouped Project is a 30-year Brazilian soil-carbon afforestation project (AR-ACM0003 v2.0) that passed validation in May 2025 after resolving 13 corrective action requests and 7 clarification requests. However, the validation report reveals significant weaknesses: a 0% leakage deduction that the audit team found was not properly demonstrated per methodology provisions, FPIC not conducted per the final report, and a project-specific baseline with unresolved questions about mining concessions and native ecosystem clearance. The project is in its earliest stage with no monitoring data yet available.

Project Description

Red Flags

• ⚠Leakage deduction of 0% was justified as 'deemed negligible,' yet the validation report explicitly notes that methodology provisions (AR-TOOL15) were not followed to demonstrate zero leakage from grazing displacement — a material finding that undermines the credibility of the zero-leakage claim.
• ⚠FPIC was not conducted according to the final validation report (2025-05-26), contradicting an earlier version of the same report (2025-03-10) that indicated it had been done. This is a fundamental safeguard gap for a project operating on community land in Brazil.
• ⚠The Non-Permanence Risk Report (NPRR) was flagged as having unclear justification and verification, and reversal events are described as 'not addressed' in the most recent document, leaving the 10% buffer pool's adequacy unconfirmed.
• ⚠Insufficient evidence was provided to demonstrate that the project area was not cleared of native ecosystems, raising questions about the eligibility of the afforestation activity under AR-ACM0003.
• ⚠Low extraction confidence across the document set means key data points (FNRB, monitoring methods, usage rates) could not be reliably extracted, limiting the depth of assessment.

Credit Vintages

No issuances recorded on the registry.