Meta (META.US) purchased carbon credit in Latin America with a transaction value of up to 16 million US dollars.

Meta Platforms, the parent company of Facebook, announced on Wednesday that it has agreed to purchase up to 3.9 million carbon offset credits from the forestry sector of Brazilian investment bank BTG Pactual by 2038. The value of the transaction has not been disclosed. According to data provider Allied Offsets, the average price for forestry carbon offsets last week was $4.22 per credit. Based on this pricing, the value of the transaction could be as high as $16 million. Carbon offsets allow companies to offset greenhouse gas emissions by paying for other emission reduction actions, in order to achieve their climate goals. Each credit represents a reduction of one ton of carbon dioxide emissions. Under a long-term contract signed between Meta and BTG Pactual Timberland Investment Group (TIG), Meta has agreed to purchase 1.3 million carbon credits and has the option to purchase an additional 2.6 million carbon credits. Meta stated that this transaction is the largest carbon reduction transaction in a single project and is part of its commitment to achieve net zero emissions across its entire value chain by 2030. According to the statement, these credits are generated from forest restoration projects in Latin America by BTG Pactual TIG, where the company has planted over 7 million seedlings. In June of this year, TIG announced the sale of 8 million carbon credits to Microsoft Corporation, marking the largest carbon credit transaction in history. Despite a general slowdown in demand for carbon offsets last year, both Microsoft Corporation and Meta continued with their transactions. Companies including food giant Nestle and fashion brand Gucci have reduced their purchases of carbon credits, as there is widespread skepticism about whether they actually help reduce emissions.