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Google joins Microsoft by purchasing carbon reduction credits from a Brazilian firm

Unit of Alphabet In an unprecedented move, Google has consented to buy nature-based carbon removal credits from a business in Brazil, marking the company’s first involvement with carbon programs in the South American nation.

Google and Mombak announced on Thursday that Google will purchase 50,000 metric tons of carbon reduction credits from Mombak by 2030. Mombak either buys back damaged property from farmers and ranchers or works in conjunction with them to reestablish native species in the Amazon rainforest.

Following in the footsteps of Microsoft, another massive U.S. tech company, which last year signed an agreement to purchase up to 1.5 million credits from Mombak, Google has previously purchased designed removal credits.

The terms of the agreement were not disclosed by Google or the Brazilian startup. Mombak priced its credits at more than $50 per ton on average in 2023 when it sold them to McLaren Racing.

Chief Technology Officer Dan Harburg of Mombak stated in an interview that he was hoped the move would lead to further partnerships, saying, “The vote of confidence for us and this sector in general that comes from Google stepping into this is a really positive signal.”

The announcement coincides with the annual Climate Week in New York, which is being held this month.

Facebook’s parent company Meta decided earlier this week to purchase up to 3.9 million carbon offset credits from the forestry division of Brazilian investment firm BTG Pactual.

The so-called Symbiosis Coalition, which aims to procure up to 20 million tons of nature-based carbon reduction credits by 2030, was co-founded by Google, Microsoft, Salesforce, and Meta.

With carbon offsets, businesses can accomplish their corporate climate targets by using the money they save on emissions reductions in other areas to offset their greenhouse gas emissions. A decrease of one ton of carbon dioxide emissions is represented by each credit.

Greenpeace and other opponents of carbon offset markets claim that these markets permit greenhouse gas polluters to continue their operations.

Categories: Business
Archana Suryawanshi:
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