Forestry forward: Aglomerados Cotopaxi's journey to carbon negativity

Aglomerados Cotopaxi, an Ecuadorian forestry company, partnered with the eco.business Fund to pioneer sustainable forestry and set a new standard for environmental responsibility in the industry. With tailored support from the eco.business Fund’s Development Facility, Cotopaxi achieved Carbon Negative Certification, making groundbreaking strides in measuring and managing the carbon footprint of forestry operations. Their journey began with an in-depth assessment of yearly CO₂ capture and carbon stock in the company’s plantations, quantifying not only direct CO₂ emissions but also those from electricity consumption and logistics. This collaboration resulted in the implementation and certification of a cutting-edge carbon-neutral management system, verified through rigorous internal and external audits.  

The eco.business Fund’s Development Facility provided guidance and technical support, enabling Cotopaxi to conduct a comprehensive assessment of net CO₂ emissions and reductions. The process included:

• Calculating net CO₂ emissions reduction as the difference between CO₂ absorption by plantations and total CO₂ emissions, including direct operations (scope 1), purchased electricity (scope 2), and transport-related activities (scope 3), in line with the Greenhouse Gas Protocol Corporate Accounting and Reporting Standard.
• Implementing a carbon-neutral management system and undergoing both internal and external audits to ensure transparency and effectiveness.
• Achieving Carbon Negative Certification in accordance with ISO 14064, confirming a net reduction equivalent to 190,000 tCO₂e and making Cotopaxi the first Ecuadorian forestry company to obtain this certification. 

This initiative not only reduced Cotopaxi’s carbon footprint but also created opportunities for additional income through the sale of carbon credits with biodiversity benefits. The project demonstrated the feasibility and advantages of carbon neutrality in the forestry sector, inspiring other businesses to follow suit. Additionally, Cotopaxi’s sustainable forestry system contributed to wildlife habitat revival, with native forests conserved and large mammals such as Andean bears, pumas, and deer returning to the plantations.