The average price for forest carbon credits last week was $4.22 per credit, according to data provider Allied Offsets. That could value the deal at as much as $16 million at that price.

Facebook owner Meta has agreed to buy up to 3.9 million carbon offset credits from the forestry arm of Brazilian investment bank BTG Pactual through 2038, the companies said in a statement Wednesday. The value of the deal was not disclosed, however.

The average price for forest carbon credits last week was $4.22 per credit, according to data provider Allied Offsets. That could value the deal at as much as $16 million at that price.

Carbon offsets allow companies to offset greenhouse gas emissions by paying for actions to reduce emissions elsewhere in order to meet corporate climate goals. Each credit represents a reduction of one metric ton of carbon dioxide emissions.

Under the long-term contract signed by Meta and BTG Pactual Timberland Investment Group (TIG), the owner of Facebook and Instagram agreed to purchase 1.3 million carbon credits, with options to purchase an additional 2.6 million credits.

Meta said the deal is its largest single-project carbon removal transaction and is part of its commitment to achieve net-zero emissions across its value chain by 2030.

The credits were generated by BTG Pactual TIG's forest restoration projects in Latin America, where it has planted more than 7 million forest seedlings, according to the statement.

In June, TIG announced the sale of 8 million carbon credits to Microsoft in the largest carbon credit transaction ever undertaken worldwide.

The Microsoft and Meta settlements come despite claims for compensation being virtually stagnant last year.

Companies including food giant Nestlé and fashion house Gucci have cut back on their purchases of credits amid widespread doubts about whether they are effective in reducing emissions.