By Gerelyn Terzo, Global AgInvesting Media
Big Technology is bringing its innovation to the agriculture industry to offset the industry’s massive carbon footprint. Most recently, Meta Platforms, the parent company of Facebook and WhatsApp, has inked a deal with EFM Partners, an investment and management firm specializing in forestry, to strengthen what the companies describe as climate-smart forestry in Washington State.
The deal is considered one of the first of its kind and was negotiated alongside the acquisition of a property located on the Olympic Peninsula of Washington state – a prime timber-growing region – in a sign the carbon-offsets industry has reached a new level of maturity. Through the long-term contract, Meta will purchase 676,000 nature-based carbon removal credits from EFM Partners through 2035. EFM is directing the proceeds to acquire the timberland property.
The agreement involves the transition of 68,000 acres of forestland to climate-smart management on Washington’s Olympic Peninsula, targeting the eradication of over 1 million tons of carbon emissions over the coming decade. Meta has set the lofty goal of achieving net zero emissions across its value chain by 2030, which it plans to do through a combination of lowering its carbon footprint and removing any lingering trace through carbon removal credits.
EFM CEO Bettina von Hagen stated, “We’re deeply grateful to Meta for recognizing the critical role forests play in addressing climate challenges and for sharing our vision of high-quality carbon projects that enhance the long-term value of our forests. Together, we’re ensuring these landscapes will benefit communities, sawmills, tribes, investors, home builders, and everyone who depends on the health of commercial forests for generations to come.”
Meta Carbon Removal Lead Tracy Johns said, “We support high-impact projects, and EFM’s extensive track record in sustainable management of forests made them an ideal partner and aligned with our goals. Our commitment to this project supported EFM’s efforts to take an approach to forest management that not only drives strong climate and forestry outcomes, but also provides real value and environmental services to local communities.”
EFM’s revenue model is multi-pronged, diversifying income from forests and expanding upon it to include carbon credits as well as conservation easements plus revenue generated from traditional forest product sales. This approach fosters improved forest management choices that lend themselves to rebuilding timber stocks and producing higher-value logs, resulting in greater climate and social benefits.
The contract unlocks predictable and long-term carbon revenue, thereby paving the way for a less risky transition to climate-smart management practices, the companies said. Through Meta’s commitment, EFM was able to lead an acquisition of property through a new organization dubbed Olympic Rainforest, comprising capital from EFM funds and outside investors. Among the backers natural capital investment manager Climate Asset Management’s Natural Capital Fund. Climate Asset Management has raised over $1 billion from institutional and corporate investors for natural capital and carbon projects globally.
Climate Asset Management CEO Martin Berg said, “When we set up Climate Asset Management four years ago, it was very much with a pioneering spirit, to become a world leader in natural capital investing. So, it is particularly pleasing to have worked with EFM and Meta in completing the acquisition of Olympic Rainforest, with its innovative long-term contract, on behalf of the investors in our Natural Capital Fund. We remain committed to supporting bold and scalable nature-based investments to secure a more climate-resilient, nature-positive and inclusive world.”
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