Amazon Reforestation: Google Deal with Brazilian Startup

Shortly before the start of the 30th World Climate Conference (COP30) this Monday in the Brazilian Amazon metropolis of Belém, Google has agreed to co-finance the reforestation of the Amazon rainforest. The US tech giant is buying CO₂ certificates from the Brazilian reforestation startup Mombak for this purpose. This is intended to offset 200,000 tons of CO₂ emissions. The news agency Reuters first reported on this.

The agreement quadruples the volume of a pilot offtake agreement between Google and Mombak from September 2024. It is the largest deal for CO₂ certificates to date, so Reuters. Both companies did not comment on the financial value of the deal.

Offsetting for energy-intensive data centers

In view of the enormous investments in energy-intensive AI data centers worldwide, big tech companies are looking for ways to mitigate the associated climate impacts through the trading of CO₂ certificates. Certificate trading is a market-based climate protection instrument. Each ton of emitted carbon dioxide corresponds to an emission certificate. The emission of climate-damaging greenhouse gases is thus associated with costs that can be traded. The goal is to create economic incentives for reducing greenhouse gas emissions and combating climate change. This form of green capitalism is viewed critically by social scientists. They point out that instruments such as emissions trading or sustainability certificates have remained largely ineffective against climate change. Global emissions are hardly decreasing or are even increasing.

A large portion of Google's greenhouse gas emissions comes from electricity the company purchases for its data centers and offices. According to the company's current environmental report, these so-called market-based Scope 2 emissions more than tripled from 2020 to last year, reaching 3.1 million tons of CO₂ equivalent.

Pastureland to Jungle

Until now, Google has shied away from forest protection certificates, known as REDD+ certificates, Randy Spock, head of emissions certificates and CO₂ removal at Google, told Reuters. These certificates reward the preservation of forest areas in developing countries that would otherwise be destroyed. However, these certificates have fallen into disrepute due to alleged fraud and connections to illegal deforestation in Brazil. Studies have also shown that only a small percentage of CO₂ certificates from selected REDD+ projects were actually linked to avoided emissions. "The reason we quadrupled our investments in Mombak is that they have a very credible approach," Spock said.

According to its own statements, Mombak pursues the strategy of turning pastureland back into jungle. His company benefits from a "flight to quality," Mombak CEO Gabriel Silva told Reuters. "Previously, buyers bought emission certificates but didn't know what they were buying. So they got involved in low-quality, sometimes fraudulent projects." Recognized reforestation projects like Mombak's now achieve up to ten times the price for their REDD+ certificates compared to other projects.

However, once deforested rainforest cannot be restored 1:1 even through reforestation projects. A crucial climate protection instrument is therefore a halt to rainforest deforestation. Brazil's President Luiz Inácio Lula da Silva stated in a guest article in the daily newspaper Frankfurter Allgemeine that his government has already halved deforestation in the Amazon region in the past two years. Furthermore, he announced the creation of an initiative to preserve forests before the climate conference in Belém, the Tropical Forests Forever Facility (TFFF), a multi-billion dollar fund through which the protection of rainforests will be financially rewarded in the long term. Brazil will contribute an investment of one billion US dollars to the TFFF. In the coming years, donor countries are expected to invest a total of 25 billion US dollars in the fund; a further 100 billion US dollars are to come from private investors.

(akn)