ESG Today reports that the carbon credits will be generated from the reforestation and nature restauration strategies implemented by BTG in Latin America and the deal is one of the largest so far in the carbon removal market.

BTG Pactual Timberland Investment Group (TIG) committed 1 billion USD for a strategy that aims to protect and restore ecosystems in Latin America, covering a total area of over 133.000 hectares.

Gerrity Lansing, Head of TIG, said that "institutional investors have a critical role to play in delivering nature-based solutions at a scale that matters for climate and biodiversity. The scale of the native forest restoration and sustainable timber production that TIG seeks to deliver with our reforestation strategy is what enables a carbon removal credit transaction of this size."

Microsoft announced this year multiple projects with the purpose of reducing its negative impact on the planet, as the company looks to become carbon-negative by 2030. One of the other projects announced this year is a 6-year offtake agreement with climate finance company Catona Climate, through which the US tech company will purchase carbon credits worth 350.000 tons of emissions, which are to be completed with agroforestry projects in Kenya.

Brian Marrs, Senior Director for Energy & Carbon Removal at Microsoft, added that "advancement towards Microsoft’s carbon negative goals necessitates innovative projects that can swiftly and sustainably scale carbon removal. This project (TIG) exemplifies how reforestation and restoration can deliver carbon removal at scale while supporting local communities and restoring vital ecosystems. This approach will attract investment to the conservation space and help scale carbon removal in line with what climate science demands."