Microsoft to receive 8 million carbon credits from investment group in largest-ever sale
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BTG Pactual Timberland Investment Group, a Latin American investment bank, is planning to execute a carbon offset credit transaction with Microsoft. TIG will provide Microsoft with up to 8 million nature-based carbon removal credits through 2043 as part of the agreement.
According to a press release, this transaction is the largest known carbon dioxide removal credit transaction to date.
The credits will be provided through TIG’s $1 billion reforestation and restoration initiative in Latin America.
Gerrity Lansing, Head of TIG, said, “Institutional investors have a critical role to play in delivering nature-based solutions at a scale that matters for climate and biodiversity. The scale of the native forest restoration and sustainable timber production that TIG seeks to deliver with our reforestation strategy is what enables a carbon removal credit transaction of this size.”
The strategy targets the conservation, restoration, and reforestation of deforested and degraded areas in specific regions of Latin America.
This purchase is part of Microsoft’s ambitious goal to become carbon-negative by 2030 and to eliminate all historical operational emissions from the environment by 2050.
Read more: Brookfield Asset Management and Microsoft ink largest-ever clean energy agreement
Brian Marrs, Senior Director for Energy and Carbon Removal at Microsoft, said, “Advancement towards Microsoft’s carbon-negative goals necessitates innovative projects that can swiftly and sustainably scale carbon removal. This project exemplifies how reforestation and restoration can deliver carbon removal at scale while supporting local communities and restoring vital ecosystems.”
The transaction is structured so that 60% of the total carbon removal credits are expected to come from carbon sequestration in newly restored native forests. In comparison, 40% of the credits will come from carbon sequestration in freshly established and sustainably managed commercial tree farms.
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