Alphabet Expands Amazon Reforestation Deal With Mombak

This article first appeared on GuruFocus.

Alphabet's (GOOGL, Financials) Google has agreed to buy 200,000 metric tons of carbon removal credits from Brazilian startup Mombak, expanding its efforts to offset emissions from data centers. The deal, Google's largest to date, is quadruple the size of a 2024 pilot program and will fund Amazon rainforest restoration on degraded pastureland.

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Google declined to disclose financial terms but said it chose Mombak for its verifiable reforestation approach, avoiding traditional REDD credits that have faced credibility issues. Mombak is the first project certified by the Symbiosis Coalition, a buyer group that includes Meta, Microsoft and Salesforce, which set strict standards for carbon accounting and biodiversity.

Credits for high-quality reforestation currently sell for more than $50 per ton, while credits for older projects sell for less than $10. The deal shows that businesses are increasingly looking for reliable carbon offsets as AI use grows. At the COP30 climate summit in Brazil, Google is likely to talk more about its plans for sustainability..

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