Brazil Busts Massive Amazon Carbon Credit Fraud Ring

Brazilian Federal Police have charged 31 individuals in what authorities are calling the country’s largest carbon credit fraud operation to date. The criminal scheme, uncovered through “Operation Greenwashing,” involved fraudulent carbon credits while simultaneously laundering illegal timber from the Amazon rainforest.

The investigation began after environmental reporter Fernanda Wenzel exposed suspicious activity in two carbon offset projects in May 2024. Analysis by the Netherlands-based Center for Climate Crime Analysis revealed a stark discrepancy between the amount of timber these projects claimed to have logged versus satellite imagery showing actual deforestation levels. This mismatch suggested the projects were being used as cover for illegal logging operations.

Police confirmed that the Unitor and Fortaleza Ituxi projects—covering more than 350,000 acres in Amazonas state—were generating lucrative carbon credits while serving as fronts for timber laundering. These REDD+ projects, designed to reduce emissions from deforestation, were instead facilitating the very forest destruction they claimed to prevent. The scheme operated in Lábrea municipality, identified as one of the Amazon’s most aggressive new deforestation hotspots.

Three interconnected criminal groups orchestrated the fraud, including one led by Ricardo Stoppe Júnior, reportedly Brazil’s largest individual carbon credit seller. This case highlights growing concerns about the integrity of carbon offset markets and the potential for environmental programs to be exploited by criminal enterprises. The bust represents a significant step in Brazil’s efforts to combat both deforestation and fraud in the rapidly expanding carbon credit industry.