Meta (NASDAQ: META), the owner of social media platforms Facebook and Instagram, has agreed to purchase up to 3.9 million carbon offset credits from the forestry division of Brazilian investment bank BTG Pactual (B3: BPAC11) by 2038, the companies announced on Wednesday.
The value of the deal was not disclosed, but with the average price of forestry carbon offsets at $4.22/credit last week, as per Allied Offsets, the agreement could be worth up to $16 million, according to Reuters.
Carbon offsets allow companies to compensate for their greenhouse gas emissions by funding projects that reduce emissions elsewhere. Each credit represents the reduction of one metric ton of carbon dioxide (CO2).
Under the contract, Meta will initially buy 1.3 million credits from BTG Pactual Timberland Investment Group (TIG), with the option to purchase an additional 2.6 million credits.
Meta stated this is its largest single-project carbon removal deal, contributing to its goal of achieving net-zero emissions by 2030.
The credits are generated from BTG Pactual’s restoration efforts in Latin America, where over 7 million seedlings have been planted.
In June, TIG also sold 8 million carbon credits to Microsoft, marking the largest-ever carbon credit transaction globally.
Despite such large deals, demand for offsets has slowed as companies like Nestle and Gucci reduce purchases amid doubts about their effectiveness in reducing emissions.
