AXA Group’s alternative investments business AXA IM Alts announced that it will invest $49 million in carbon removal start-up Mombak’s Brazilian Amazon rainforest restoration projects.

Founded in 2021, Brazil-based Mombak is focused on large-scale carbon removal projects, starting with native, biodiverse reforestation of the Amazon rainforest. The company’s solution targets capturing carbon through large-scale reforestation of degraded, unproductive pastureland with native tree species and assisted natural regeneration, with co-benefits including reversing biodiversity loss, improving watershed assets and generating employment and social impact in local communities.

Mombak said that it aims to remove 1 million tons of carbon dioxide from the atmosphere every year by 2030.

The investment is part of AXA IM Alt’s natural capital and impact investing strategy. Natural Capital Strategy it launched last year with €500 million in commitments from AXA Group investors, to focus on financing activity that ensures that vulnerable or high value natural habitats are protected from deforestation. The strategy forms part of a commitment made by AXA to invest €1.5 billion to support sustainable forest management.

AXA IM Alts has also acquired a minority equity stake in Mombak, supporting the start-up in scaling up its operational and technological systems.

Adam Gibbon, Natural Capital Lead at AXA IM Alts, said:

“We are delighted to be supporting Mombak’s ambition to reforest the Brazilian Amazon rainforest at scale through an equity stake and project financing partnership. Globally, reforestation has the potential to capture 2-3 bn tonnes CO2 per annum and with Mombak we want to be at the forefront of making that possibility a reality. This investment is fully aligned with our broader commitment to contribute to mitigate climate change and avert the biodiversity crisis.”