In March and May 2025, Meta and Microsoft signed long-term carbon credit offtake agreements with EFM for a 68,000-acre Olympic Rainforest project in Washington State, managed by Climate Asset Management (CAM). Meta will purchase 676,000 credits and Microsoft up to 700,000 by 2035, totaling 1.376 million credits to remove over 1 million tonnes of CO2 via climate-smart forestry. Backed by CAM’s $1 billion Natural Capital Fund, the FSC-certified project shifts from industrial logging to Improved Forest Management (IFM), doubling timber stocks in 15 years, enhancing biodiversity, and supporting Quileute and Hoh tribes. With high-integrity credits aligning with EU CRCF and CCP standards, these deals signal a maturing voluntary carbon market (VCM). Can such projects scale to meet net-zero goals, or will costs and regulatory shifts limit impact?

Project Details and Impact

The Olympic Rainforest, near Olympic National Park, transitions 68,000 acres to climate-smart management:

• Carbon Removals: Over 1 million tonnes of CO2 removed by 2035, with 10 million tonnes currently stored, per EFM. IFM extends harvest cycles by 15-20 years, retaining 10-30% more trees.

• Biodiversity: Restores salmon habitats, adds western red cedar and bigleaf maple, and supports endangered species, with 30% habitat improvement, per Wild Salmon Center.

• Community Benefits: Partners with Quileute and Hoh tribes for cultural harvesting, creates 50 jobs, and boosts tourism.

• Timber Growth: Nearly doubles timber stocks by 2040, yielding $50M in high-value logs.

• Financing: $200M acquisition via Olympic Rainforest LLC, funded by EFM, CAM’s Natural Capital Fund, and third-party investors.

“This de-risks climate-smart forestry,” said CAM’s James Bullen, noting blended revenue from timber, credits ($20-$30/tonne), and easements.

Corporate Strategies

• Meta: Targets net-zero by 2030, including Scope 3 emissions (70% of total). The deal, part of the Symbiosis Coalition with Microsoft, Google, and Salesforce, follows a 3.9M credit purchase from BTG Pactual. Meta’s 200,000 annual credits support data center offsets.

• Microsoft: Aims for carbon-negative by 2030, removing historical emissions by 2050. The agreement adds to 10M tonnes of 2024 CDR credits, with $1B Climate Innovation Fund investing in EFM Fund IV ($300M for 2.3M credits).

• EFM and CAM: EFM’s 200,000-acre portfolio and CAM’s $1B funds pioneer IFM, with ACR methodology ensuring credit integrity.

“EFM’s track record made them ideal,” said Meta’s Tracy Johns.

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Market and Regulatory Context

The VCM, valued at $2B in 2024, could reach $50B by 2030, per BloombergNEF. Key trends:

• High-Integrity Credits: EU CRCF and CCPs demand permanence, additionality, and co-benefits, met by FSC-certified IFM.

• Long-Term Offtakes: Unlike spot purchases, 10-year deals provide price certainty ($20-$40/tonne), de-risking $200M investments.

• Corporate Leadership: Microsoft’s 8M tonnes of 2024 credits and Meta’s Symbiosis Coalition drive 20M tonnes of nature-based removals.

Aligns with initiatives like:

• IFRS S2: Scope 3 disclosures push credit purchases.

• Amprion’s €1B Bond: Grid upgrades support renewable-powered data centers.

• EU’s 54% Cut: Forestry supports 2030 goals.

Challenges and Risks

• Credit Integrity: IFM baselines risk overestimation, though ACR’s 2024 update improves accuracy. 20% of 2023 credits were questioned.

• Costs: $200M upfront and $5M annual management strain budgets, with credits covering 30% of costs.

• Scale: Forests absorb 30% of global CO2, but 1M tonnes is 0.03% of 2024’s 36 Gt emissions.

• Policy Risks: Trump’s 2025 deregulation may weaken VCM incentives, impacting 10% of global credits.

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What’s Next?

EFM plans 100,000 more acres by 2027, targeting 2M tonnes of removals. CAM’s $500M Nature-Based Carbon Fund II, launching Q3 2025, eyes 5M credits by 2030. The VCM could see 1B tonnes traded by 2035, per SMI. Microsoft and Meta’s deals may inspire 50 corporates to commit $5B.

“This sets a precedent,” said EFM’s Bettina von Hagen.

With 1.376M credits secured, the project showcases scalable IFM. Will it redefine corporate climate action, or face scalability hurdles?

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