Google, Amazon Forests for a Big Carbon Agreement

BELEM, Brazil - Google signed the largest carbon removal agreement to restore the Amazon rainforest with a Brazilian startup named Mombak to offset emissions from energy-intensive data centers. The agreement will offset 200,000 metric tons of carbon emissions.

Mombak is Google's sole forest carbon credit provider, and this agreement is four times larger than a pilot offtake agreement signed in September 2024. No details were provided regarding the value of the agreement.

This development shows that major tech companies are exploring ways to mitigate climate impacts from energy-intensive data centers and that Brazil is creating demand to balance carbon emissions from its emerging reforestation industry.

Alphabet's Google allocated over $100 million last year to various carbon capture technologies. However, the effectiveness of tree planting has come to the forefront.

Google's carbon credits and removals lead Randy Spock stated, "The least risky technology for reducing carbon in the atmosphere is photosynthesis," emphasizing that plants produce oxygen and glucose using sunlight, water, and carbon dioxide.

This month, Brazil is highlighting forest conservation efforts with the United Nations climate summit COP30 held in Belém, Brazil. The summit has proposed a new fund for tropical forests.

Google has indicated its avoidance of REDD credits, which are defined as rewarding the protection of certain forest areas. However, this market has been shaken due to allegations of fraud and illegal logging relationships in Brazil.

Mombak has pointed out the damages faced by buyers involved in low-quality and sometimes fraudulent projects, with Gabriel Silva stating, "We have a very reliable approach to reforestation with Mombak."

Google formed a buyer group called the Symbiosis Coalition last year with Meta, Salesforce, McKinsey, and Microsoft. This coalition aims to sign contracts for 20 million tons of nature-based carbon balancing by 2030.

This goal includes adhering to strict scientific standards for long-term protection and providing benefits to local communities. Mombak was the first project to meet the standards reviewed by the coalition among 185 projects.

Brazil has the largest number of projects aiming to gain coalition approval. However, the scarcity of credits meeting the highest standards and the wallets of those seeking them are driving up prices. REDD credits sell for under $10, while Brazil's new reforestation initiatives are priced in the range of $50 to $100.

Gabriel Silva summarized the current situation by saying, "Companies are becoming more efficient in production at lower prices. But right now, demand far exceeds supply."