According to a report from the Intelligence Financial App, Meta Platforms (META.US) revealed on Wednesday that the company has agreed to purchase up to 3.9 million carbon offset credits from the forestry division of BTG Pactual in Brazil by 2038. The transaction value has not been disclosed. Based on data from the provider Allied Offsets, the average price of forestry carbon offsets last week was $4.22 per credit. Using this pricing, the value of this transaction could reach up to $16 million.

Carbon offsets allow businesses to offset greenhouse gas emissions by paying for other emission reduction activities, in order to achieve corporate climate goals. Each credit represents a reduction of one ton of carbon dioxide emissions.

Under a long-term contract signed between Meta and BTG Pactual Timberland Investment Group (TIG), Meta has agreed to purchase 1.3 million carbon credits and has the option to acquire an additional 2.6 million carbon credits.

Meta stated that this transaction is the largest carbon emission reduction deal in a single project for the company, and is part of its commitment to achieving net-zero emissions across its entire value chain by 2030.

According to the announcement, these credits are generated by BTG Pactual TIG's forest restoration projects in Latin America, where the company has planted over 7 million seedlings.

In June of this year, TIG announced the sale of 8 million carbon credits to Microsoft (MSFT.US), marking the largest carbon credit transaction in history globally.

Although the demand for carbon offsetting was generally stagnant last year, microsoft and meta platforms still engaged in trade.

Companies including food giant Nestle and fashion brand Gucci reduced their purchases of carbon credit limits as people generally doubt their contribution to emission reduction.