Microsoft Backs Major Afforestation Project in India with 1.5M Carbon Credit Deal

Microsoft has taken another step toward scaling its carbon removal strategy, signing a long-term agreement to purchase 1.5 million carbon credits from a UK-based project developer. The credits will be sourced over the next three decades from an expansive afforestation project in Madhya Pradesh, India.

Landscape view of a reforestation initiative in Madhya Pradesh in India. AI generated picture.

Led by Climate Impact Partners, the initiative is set to cover 20,000 hectares of land in Panna, with plans to plant up to 11.6 million native trees. This afforestation effort not only aims to restore degraded ecosystems but also plays a crucial role in generating verified carbon removals.

So far, 1.2 million trees have already been planted across 100 community-owned sites in the region. The project has attracted investment from Terra Natural Capital, a firm specializing in environmental commodities. For Microsoft, this represents its largest carbon removal initiative in the Asia-Pacific region and its first project of this kind in India.

‘At Microsoft, we believe that high-quality, nature-based solutions are vital to addressing climate change. Panna forms an important part of our growing portfolio of carbon removal projects,’ said Brian Marra, senior director of energy markets at Microsoft.

The afforestation project is expected to remove a total of three million tonnes of CO₂ while delivering a range of socio-economic and environmental benefits. It is designed to support sustainable farming, improve water conservation, enhance biodiversity, and create new income opportunities for local communities.

The initiative follows Verra’s VM0047 afforestation, reforestation, and revegetation methodology and has been rated ‘A’ by UK-based carbon ratings agency BeZero. To further ensure accountability, it will also be verified under Verra’s Climate, Community & Biodiversity Standard, guaranteeing both environmental and social co-benefits.

With Microsoft continuing to expand its carbon removal investments, this agreement highlights the increasing importance of afforestation projects in achieving corporate sustainability goals.