Google, Amazon Rainforest's Big Carbon Agreement

BELEM, Brazil - Google has signed the largest carbon removal agreement to restore the Amazon rainforest with Mombak, a Brazilian startup, to offset emissions from its 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 about the value of the agreement.

This development demonstrates that large technology companies are exploring ways to reduce the climate impact of their energy-intensive data centers and that there is demand to offset carbon emissions from Brazil's emerging reforestation industry.

Google, which is part of Alphabet, allocated over $100 million last year to various carbon capture technologies. However, the effectiveness of planting trees has come to the forefront.

Randy Spock, head of carbon credits and removals at Google, stated, "The least risky technology for reducing carbon in the atmosphere is photosynthesis," adding that in this process, plants produce oxygen and glucose using sunlight, water, and carbon dioxide.

This month, Brazil is highlighting its forest protection efforts at the United Nations climate summit COP30 held in Belem, Brazil. The summit has proposed a new fund for tropical forests.

Google has stated that it is staying away from REDD credits, which are defined as rewards for preserving certain forest areas. However, this market has been shaken by allegations of fraud and links to illegal logging in Brazil.

Mombak has pointed out the harm caused to 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 offsetting by 2030.

This goal includes long-term protection that meets strict scientific standards and provides benefits to local communities. Of the 185 projects reviewed by the coalition, Mombak was the first to meet the standards.

Brazil has the most projects seeking approval from the coalition. However, the scarcity of credits meeting the highest standards and the wallets of those seeking them are driving prices up. REDD credits sell for less than $10, while Brazil's new reforestation initiatives are priced between $50 and $100.

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