Microsoft Strikes The Largest Carbon Removal Credits Deals – Up To 8M Nature-Based CDR

Microsoft Strikes The Largest Carbon Removal Credits Deals - Up To 8M Nature-Based CDR - Carbon Herald
Credit: trevor pye | Unsplash

One of the largest forest protection and restoration deals has been made to set the bar high in corporate climate change action and spur momentum in the carbon removal market. Microsoft will execute carbon offset credit transactions with the BTG Pactual Timberland Investment Group (TIG) – one of the world’s largest timberland managers, for up to 8 million nature-based carbon removal credits through 2043.

The transaction is deemed the largest carbon removal credits’ one, according to data and analytics provider MSCI Carbon Markets. The credits will be delivered from Timberland Investment Group’s $1 billion reforestation and restoration strategy in Latin America that aims to mobilize the money over five years to deliver climate benefits.

Relevant: Google, Meta, Microsoft, And Salesforce Establish World’s Largest Advance Market Commitment For Nature-Based Projects

The $1 billion initiative will protect and restore hundreds of thousands of acres of natural forests in degraded landscapes across Latin America, plant hundreds of millions of trees in sustainably managed commercial forests, provide tens of millions of tons of carbon benefit, and support equitable community development. The initiative is in collaboration with Conservation International that will serve as an impact adviser.

“From its inception, we have aimed to break new ground with this strategy, both in terms of scale and impact. We are proud to work with industry leaders like Microsoft, who are committed to purchasing high-quality removal credits and retiring them as part of a comprehensive corporate decarbonization strategy,” commented Mark Wishnie, Chief Sustainability Officer of TIG and head of the firm’s reforestation strategy.

The reforestation and ecosystem restoration strategy aims to protect and bring back approximately 135,000 hectares (more than 330,000 acres) of natural forests in deforested landscapes. It will also seek to plant millions of trees in sustainably managed commercial tree farms on another 135,000 hectares.

Relevant: Microsoft Purchased More Than 970,000 Credits From Anew’s Nature-Based Portfolio

So far, TIG has invested in 37 thousand hectares, has planted more than 7 million seedlings and initiated restoration of approximately 2,600 hectares of natural forest. The deal with Microsoft is structured so that 60% of the total carbon removal credits are attributable to carbon sequestration in newly restored native forests and 40% of the credits come from carbon sequestration in newly established and sustainably managed commercial tree farms.

“Companies like Microsoft are showing us what corporate climate leadership looks like. Rather than stepping back from action, they have remained firm in their commitment to not only identify and support projects that can generate high-integrity carbon credits, but to support the growth of the high-integrity carbon market in Brazil and other countries in the region, which can make a big impact for the climate,” added Mr. Wishnie.

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