The past month has seen a surge in corporate commitments to carbon reduction and removal, signalling strong momentum in the voluntary carbon market. Several major deals have been announced, demonstrating a growing commitment to addressing climate change through market-based solutions.
Amazon Leads $180M Deal to Protect the Amazon Rainforest
In a landmark agreement, Amazon, along with five other major companies, has committed to a $180 million carbon credit purchase to protect Brazil's Amazon rainforest.
The deal involves:
5 million carbon credits purchased at $15 each
An additional 7 million credits available for future purchase
Participation from Amazon, Bayer, Boston Consulting Group, Capgemini, H&M, and Walmart Foundation
Facilitation by the LEAF Coalition, co-founded by Amazon in 2021
This transaction marks the first LEAF deal in the Amazon rainforest and sets a premium price of $15 per credit, significantly above the $4.49 average for nature-based credits.
Microsoft Expands Enhanced Rock Weathering Partnership
Microsoft has signed a deal with UNDO for enhanced rock weathering (ERW) carbon removal.
This agreement will:
Remove 15,000 tonnes of CO2 permanently from the atmosphere
Spread 65,000 tonnes of crushed silicate rock across the UK and Canada
Fund crucial scientific research in ERW
This expansion builds on their 2023 partnership and represents a significant scaling up of ERW efforts.
British Airways Becomes UK's Largest Carbon Removal Purchaser
British Airways has announced a £9 million deal to become the UK's largest purchaser of carbon removals.
This six-year agreement includes investments in:
CO₂ capture from whisky distilleries
Enhanced rock weathering
Reforestation projects across the UK and beyond
Google's First Nature-Based Carbon Credit Purchase
Google has made its first-ever purchase of nature-based carbon credits, acquiring 50,000 metric tons from MOMBAK, a Brazilian reforestation startup.
The deal:
Aligns with Google's commitment to invest $35 million in carbon removal credits over the next year
Supports reforestation projects in the Amazon
Contributes to the Symbiosis Coalition's goal of contracting up to 20 million tons of nature-based carbon removal credit
Meta's Large-Scale Forestry Credit Purchase
Meta has agreed to purchase up to 3.9 million carbon offset credits from BTG Pactual's forestry arm in Latin America by 2038. This is Meta's largest carbon removal transaction from a single project to date.
The deal includes:
The initial purchase is for 1.3 million carbon credits, with an option for an additional 2.6 million credits.
The deal could be worth up to $16 million based on current market prices.
The credits are generated through BTG Pactual Timberland Investment Group's (TIG) reforestation initiatives in Latin America.
The deal aligns with Meta's goal of achieving net-zero emissions by 2030.
These significant deals represent a positive trend for carbon markets, showcasing increased corporate engagement and investment in high-quality carbon reduction and removal projects. By setting new standards for pricing, scale, and project quality, these commitments are helping to mature the voluntary carbon market and drive innovation in climate solutions. As more companies recognise the value of these investments, we can expect continued growth and evolution in carbon markets, contributing significantly to global climate change mitigation efforts.
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