Google and McKinsey will buy a total of 320,000 metric tons of carbon dioxide removal credits from a project in Brazil. The 10-year deal is part of the two companies’ efforts to increase the use of environmentally friendly solutions to limit emissions.
The project was developed by climate technology company Working Trees and uses a silvopastoral system. In this system, trees, pastures and livestock are grown on the same land. According to the deal information, this is the company’s first project focused on silvopastoral carbon removal.
Long-term carbon credit agreement
Carbon credits are units associated with the removal of one metric ton of carbon dioxide from the atmosphere. In this case, future credits will be generated by managing and restoring farmland in a way that combines production and carbon storage in vegetation and soil.
The deal was signed within the framework of the Symbiosis Coalition - an alliance of corporate buyers, including Google, McKinsey, Microsoft, Salesforce and others. The coalition seeks to create sustainable demand for projects with stricter requirements for measuring carbon removed, long-term storage and biodiversity benefits.
“Environmentally friendly carbon removal is an important tool for limiting climate change“, Google said in the coalition presentation.What the deal means for the project
For Working Trees, the 10-year contract provides a pre-negotiated market for the credits produced. These types of agreements can make it easier to finance projects where revenue depends on future carbon removal and certification.
The deal also shows a shift in corporate demand for carbon credits. Companies are increasingly looking for projects where reducing their carbon footprint is linked to land restoration, ecosystem protection and support for local production, rather than simply purchasing standard offset units.
Sources: reuters.com