World Bank and Amazon launch 120 million dollar bond to restore South African Spekboom ecosystems

New 120 million dollar bond uses Spekboom restoration in South Africa to generate carbon credits for Amazon and returns for global investors.

By: AXL Media

Published: Apr 24, 2026, 8:27 AM EDT

Source: Information for this report was sourced from MyBroadband

Innovative Finance for Ecosystem Rehabilitation

The World Bank has introduced a 120 million dollar carbon bond specifically designed to fund the restoration of degraded landscapes in South Africa’s Eastern Cape Province. This 14 year financial instrument represents a strategic collaboration with Amazon.com, marking a shift toward outcome based financing in the region. Unlike traditional fixed income products, the returns for this bond are directly tied to the successful production of carbon credits. These credits are generated through the large scale planting and protection of Spekboom, a succulent plant native to the area that is highly efficient at sequestering atmospheric carbon.

Amazon Commits to Large Scale Carbon Offsets

As a primary partner in the initiative, Amazon has entered into an agreement to acquire a substantial portion of the carbon credits produced over the life of the bond. These credits, which each represent one ton of carbon dioxide removed from the atmosphere, allow the global retailer to offset its own corporate emissions. The project is currently registered on the Verra carbon registry, ensuring that the environmental impact is verified according to international standards. This deal provides a guaranteed revenue stream that underpins the additional payments promised to the bond's institutional investors.

Spekboom Restoration Targets Overgrazed Thickets

The primary ecological objective of the project is the rehabilitation of the Albany thicket, a vast 1.7 million hectare expanse that has seen 80 percent of its vegetation degraded by centuries of goat overgrazing. Spekboom, known in Afrikaans as the bacon tree due to its succulent leaves, is essential for maintaining soil health and water retention in the Eastern Cape. Michael Bennett, the World Bank’s head of market solutions, noted that the plant offers a cost effective method for carbon sequestration while providing a necessary canopy for other indigenous species to return to the landscape.