ByteDance, the Chinese parent company of social media giant TikTok, has purchased rights to more than 100,000 tonnes of carbon credits, further evidence of growing corporate demand for the asset class.
The Beijing-headquartered tech firm has acquired rights to purchase the credits through Rubicon Carbon’s flagship carbon credit offering, as part of its efforts to meet a net zero target by 2030. ByteDance said it aims to reduce at least 90% of its operational emissions, with the remaining 10% offset through carbon credits.
“As we advance toward our 2030 carbon neutrality goal, it’s critical that we build long-term relationships with trusted partners. This purchase marks an important step in that journey, and we look forward to continuing our collaboration with Rubicon Carbon,” said Ian Gill, global head of sustainability at ByteDance.
The deal represents a potential tailwind for TPG Rise Climate, the dedicated climate investment strategy of US alternatives manager TPG. TPG Rise Climate was an early backer of carbon credits, having provided $300 million in seed funding for Rubicon Carbon, and remains a majority shareholder.
TPG Rise Climate, in turn, has attracted capital from major asset owners, including Canadian pension funds such as the Ontario Teachers' Pension Plan Board, the Public Sector Pension Investment Board, and the UK’s largest corporate defined benefit fund, the Universities Superannuation Scheme (USS).
The move comes just a week after Microsoft announced a major investment in carbon credits as it seeks to become carbon negative by 2030.
Both transactions indicate a potential turning point for the voluntary carbon credit market, which has slumped in recent years. In 2024, transaction values fell to their lowest level since 2018. This was partly driven by declining demand from oil and gas companies, traditionally the largest buyers of credits, and growing concerns about the credibility and quality of credits issued. Critics of carbon credits cite the widespread adoption by fossil fuel firms as an example of greenwashing.
However, in the first quarter of 2025, carbon credit retirements, a key market indicator, held firm and matched new issuances, according to carbon data platform Sylvera. This suggests the market could be poised for a recovery.
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