Google Acquires Carbon Removal Credits from Brazilian Startup, Partnering with Microsoft – Reuters

By Gabriel Araujo

SAO PAULO (Reuters) – Google has made a significant move by deciding to purchase nature-based carbon removal credits from a Brazilian startup for the first time. This marks Google’s initial foray into carbon projects within Brazil.

The company plans to acquire 50,000 metric tons of carbon removal credits by 2030 from Mombak, a startup that focuses on purchasing degraded land from farmers and ranchers and collaborating with them to replant native species in the Amazon rainforest. The information was disclosed on Thursday by both companies.

Previously, Google has only engaged in engineered carbon removal credits, contrasting with Microsoft, which last year secured a deal to purchase up to 1.5 million credits from Mombak.

While the specifics of the agreement were not disclosed, Mombak previously sold credits to McLaren Racing in 2023, pricing them at an average of over $50 per ton. Dan Harburg, Mombak’s Chief Technology Officer, expressed optimism about Google’s involvement, indicating that it could lead to increased opportunities within the sector.

This announcement coincides with the annual Climate Week event occurring in New York, where various companies and authorities are convening. Notably, earlier this week, Meta, the parent company of Facebook, agreed to purchase up to 3.9 million carbon offset credits from the forestry division of Brazilian investment bank BTG Pactual.

Google, Microsoft, Meta, and Salesforce are co-founders of the Symbiosis Coalition, a group that aims to secure up to 20 million tons of nature-based carbon removal credits by 2030.

Carbon offsets are utilized by companies to compensate for their greenhouse gas emissions by funding initiatives that reduce emissions elsewhere to achieve corporate climate objectives. Each credit signifies a reduction of one ton of carbon dioxide emissions. However, critics of carbon offset markets, including organizations like Greenpeace, contend that these mechanisms enable emitters to continue discharging greenhouse gases.