Microsoft has agreed to purchase up to 8 million carbon removal credits from the BTG Pactual Timberland Investment Group (TIG) by 2043 in what is being hailed as the largest transaction of its kind to date.

The credits, worth an undisclosed amount, will come from BTG Pactual's $1 billion effort to conserve, replant and manage commercial forests across over 270,000 hectares in Latin America. The scheme aims to let areas regenerate naturally while planting new sustainable timber plantations across previously degraded lands.

"This commitment proves we don't need to sacrifice profits for preservation," claimed Dr. M. Sanjayan of Conservation International, which is advising on the social and environmental aspects. "We can restore forests, soak up carbon at scale, mobilise big money and protect nature without abandoning economic activity."

So far, TIG has invested in over 37,000 hectares in the region, planting more than 7 million seedlings and kick-starting restoration across 2,600 hectares of natural forest. Going forward, the strategy will focus on reforestation, planting sustainable commercial tree farms certified by the Forest Stewardship Council, and allowing cleared areas to regenerate naturally.

"The scale demonstrates potential climate gains while boosting rural jobs," said Mark Wishnie, BTG's sustainability chief. "Microsoft is leading by backing high-integrity offsetting that others can follow."

The deal forms part of Microsoft's goal to be carbon negative by 2030 and ultimately remove all its historical emissions since 1975. The company said that the deal reflects its push to invest in carbon dioxide removal through reforestation at scale alongside other negative emissions technologies, but critics have historically questioned whether offsetting can ever truly make up for a corporation's continued carbon footprint.

"Innovative projects that can rapidly and verifiably remove carbon are essential," said Brian Marrs from Microsoft's carbon program. "This shows how reforestation could do that at scale alongside community and eco-benefits."

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