Facebook owner Meta has done a deal with a Brazilian investment bank’s forestry arm to buy carbon offset credits.
The tech giant agreed to buy up to 3.9 million carbon offset credits from BTG Pactual’s forestry arm through till 2038, the companies said on Wednesday in a statement.
They did not disclose the value of the deal, but the average price for forestry carbon offsets last week was $4.22 per credit, according to data provider Allied Offsets. That could value the deal at up to $16 million based on that price.
ALSO SEE: Nearly Half of Gen Z Wish TikTok Was Never Invented: US Poll
Carbon offsets allow companies to offset greenhouse gas emissions by paying for actions to cut emissions elsewhere to meet corporate climate goals. Each credit represents a reduction of one metric ton of carbon dioxide emissions.
Under the long-term contract signed by Meta and BTG Pactual Timberland Investment Group (TIG), the owner of Facebook and Instagram agreed to buy 1.3 million carbon credits, with options to purchase an additional 2.6 million credits.
Meta said the deal is its largest carbon removal transaction from a single project and is part of its commitment to reach net zero emissions across its value chain in 2030.
The credits were generated by BTG Pactual TIG’s forest restoration projects in Latin America, where it has planted more than 7 million seedlings, according to the statement.
In June, TIG announced the sale of 8 million carbon credits to Microsoft in the largest-ever transaction of such credits worldwide.
The deals from Microsoft and Meta come even though demand for offsets broadly stalled last year.
Companies including food giant Nestle and fashion house Gucci have reduced their buying of credits amid widespread doubts that they served to reduce emissions.
- Reuters with additional editing by Jim Pollard
NOTE: The headline on this report was amended on September 19, 2024.
ALSO SEE:
Germany Rejects ‘Fake’ Chinese Carbon Credits Used by Oil Firm
Firms May Abandon Net-Zero Plans Amid Carbon Offset Uncertainty
A Third of Carbon Credits Fail on New ‘High-Integrity’ Criteria
Carbon Offsets Mostly ‘Ineffective’, Slow Net Zero Shift – FT
Heatwaves, Forest Fires Depleted Vital Carbon Sink – NS
Zero-Carbon Breakthrough For Industry’s Dirty Businesses – NA
China Turns to Carbon Capture, Biomass For Coal Power Emissions
Zero-Carbon Drive Doubts Delaying Key Minerals Investment
Carbon Removal Could Rake in $100 Billion Annually From 2030
