BTG Pactual TIG and Microsoft Execute Largest Known Carbon Credit Deal

BTG Pactual Timberland Investment Group (TIG), part of BTG Pactual, the largest investment bank in Latin America, recently announced (6-18-24) the execution of a carbon offset credit transaction with Microsoft. Under the terms of the agreement, TIG will provide Microsoft with up to 8 million nature-based carbon removal credits through 2043.

This purchase is part of Microsoft’s ambitious commitment to be carbon negative by 2030, and by 2050 to remove from the environment all historical operational emissions since the company was founded in 1975. Microsoft has a portfolio of negative emission technologies including carbon removal credits.

Commenting on the transaction, Microsoft Senior Director for Energy & Carbon Removal Brian Marrs 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. This approach will attract investment to the conservation space and help scale carbon removal in line with what climate science demands.”

The transaction is the largest known carbon dioxide removal credit transaction to date, according to MSCI Carbon Markets data. The credits will be delivered from TIG’s $1 billion reforestation and restoration strategy in Latin America, for which Conservation International serves as Impact Adviser to help TIG achieve positive environmental, climate, and social impacts.

The strategy focuses on the conservation, restoration, and planting of deforested and degraded properties in selected regions in Latin America, including the Cerrado biome in Brazil, one of the most biodiverse seasonally dry ecosystems in the world. Approximately half of the Cerrado has already been converted to other uses, and the biome continues to face high rates of commodity-driven deforestation.

With Conservation International’s support, the strategy aims to protect and restore approximately 135,000 hectares (more than 330,000 acres) of natural forests in deforested landscapes. The strategy also seeks to plant millions of trees in sustainably managed commercial tree farms, independently certified to Forest Stewardship Council (FSC)™ standards, on another approximately 135,000 hectares of previously deforested and degraded land. To date, TIG has invested in 37 thousand hectares, and has already planted more than 7 million seedlings and initiated restoration of approximately 2,600 hectares of natural forest.