BTG Pactual Timberland Investment Group to provide Microsoft with 8 million carbon removal credits

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.
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.
TIG is also conducting trainings with local communities on seed collection to support the restoration of native species. In September 2023, TIG collaborated with the Mato Grosso do Sul Native Seed Network to provide native tree seed collection training for nearby community members. Seed collection can provide new sources of income by supplying a growing restoration market.