Tropical forests are the planet’s most powerful natural carbon capture system, absorbing gigatonnes of CO₂ every year. However, accelerating climate change and deforestation are threatening this crucial function. For climate-conscious corporations, investors, and project developers, understanding where the most investible carbon lies is essential for building impactful carbon portfolios.

Below are the top three countries with the largest tropical carbon sinks and the policy actions shaping their contribution to the global carbon market.

1. Brazil – Guardian of the Amazon

• Tropical forest area: Approximately 330 million hectares

• Investible carbon potential: 426.2 Mt CO₂ per year

Brazil contains around 60 percent of the Amazon Rainforest, the largest continuous tropical forest in the world. The country offers the highest volume of investible carbon globally, meaning carbon that is measurable, verifiable, and certifiable under recognized standards for carbon credits.

Recent policy efforts include Brazil’s proposal for the Tropical Forests Forever Facility, which aims to mobilize US$250 billion for conserving tropical forests worldwide. Brazil has also launched a national Action Plan to achieve zero deforestation in the Legal Amazon by 2030.

With its massive forest reserves and strong government interest in international climate finance, Brazil represents the most scalable opportunity for high-quality forest carbon projects.

2. Indonesia – Peatland Protection and Community Forestry

• Tropical forest area: Approximately 94.1 million hectares (covering 51.1% of total land)

• Investible carbon potential: 230.5 Mt CO₂ per year

Indonesia is home to a wide variety of forest ecosystems, including carbon-rich peatlands and mangroves. These ecosystems are not only vital for climate mitigation but also support biodiversity and indigenous livelihoods.

In 2024, Indonesia signed an agreement with the Bezos Earth Fund to protect 15 million hectares of forest, with 23 percent allocated to customary (adat) forests. The country also extended its bilateral agreement with Norway to decarbonize the forestry sector and transform it into a net carbon sink by 2030 under the FOLU Net Sink roadmap.

Indonesia's focus on inclusive, rights-based forest governance positions it as a major destination for high-integrity carbon credits with strong co-benefits.

3. Democratic Republic of Congo – The Lungs of Central Africa

• Tropical forest area: Around 152 million hectares

• Investible carbon potential: 85.3 Mt CO₂ per year

The Democratic Republic of Congo (DRC) hosts 60 percent of the Congo Basin rainforest, the second-largest tropical forest in the world. While governance challenges exist, the country has recently taken key steps to support sustainable land use.

The DRC signed a 10-year partnership with the United Kingdom under the Central African Forest Initiative (CAFI), aiming to curb deforestation, restore 8 million hectares, and protect 30 percent of its national territory. In January 2025, DRC enacted the Virunga-Kinshasa Green Corridor Law, securing 54 million hectares of forest while promoting renewable energy and sustainable agriculture.

DRC is an emerging hotspot for impactful nature-based solutions, especially for developers who can engage meaningfully with local communities and strengthen benefit-sharing mechanisms.

What This Means for the Carbon Market

• Corporates can diversify their carbon portfolios and secure high-integrity credits before prices peak.

• Investors can tap into blended finance and jurisdictional REDD+ frameworks to fund large-scale mitigation.

• Project developers should align their methodologies with national policies and include strong community co-benefits to meet both compliance and voluntary market demand.

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