Key Impact Points:
- Record-Breaking Carbon Credit Transaction: The largest carbon dioxide removal credit deal to date.
- Strategic Environmental Impact: $1 billion reforestation initiative in Latin America, enhancing biodiversity and community benefits.
- Corporate Climate Leadership: Microsoft’s commitment to being carbon negative by 2030.
The BTG Pactual Timberland Investment Group (TIG) has struck a groundbreaking deal with Microsoft, promising up to 8 million nature-based carbon removal credits through 2043. This landmark transaction, the largest of its kind, underscores the significant potential for environmental restoration in Latin America.
Restoration and Reforestation Strategy
TIG’s $1 billion strategy focuses on reforesting and restoring deforested lands across Latin America, with Conservation International as the Impact Adviser. The initiative targets critical ecosystems like Brazil’s Cerrado biome, aiming to protect and restore approximately 135,000 hectares of natural forests and plant millions of trees on another 135,000 hectares.
Significant Environmental and Social Benefits
Mark Wishnie, Chief Sustainability Officer of TIG, emphasized the scale and impact of this initiative, stating, “We are proud to work with leaders like Microsoft, committed to high-quality removal credits as part of a comprehensive decarbonization strategy.”
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Dr. M. Sanjayan, CEO of Conservation International, added, “This commitment from Microsoft proves that economic and environmental goals can align, enhancing biodiversity and livelihoods while addressing climate change.”
Microsoft’s Carbon Negative Ambition
Brian Marrs, Senior Director for Energy & Carbon Removal at Microsoft, highlighted the importance of such innovative projects for achieving Microsoft’s carbon negative goals by 2030. He noted, “This project demonstrates how reforestation can deliver carbon removal at scale, support local communities, and restore vital ecosystems.”
Community and Biodiversity Enhancement
TIG’s efforts extend beyond carbon sequestration. They are conducting extensive biodiversity research and community training programs. More than 297 species have been identified on the strategy’s first property, and local community members receive training in native tree seed collection, contributing to both restoration efforts and local economies.
Quotes from Key Leaders:
- Mark Wishnie, Chief Sustainability Officer, TIG: “Microsoft’s leadership has built the high-integrity carbon offset market, blazing a trail for others to follow.”
- Gerrity Lansing, Head of TIG: “Institutional investors play a crucial role in delivering nature-based solutions at a significant scale.”
- Dr. M. Sanjayan, CEO, Conservation International: “We can restore degraded forests and remove carbon at scale while mobilizing private capital.”
This transaction sets a new benchmark for corporate climate action, demonstrating that ambitious environmental goals can drive substantial benefits for both nature and communities.
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