Microsoft Secures 7M More Carbon Removal Credits

Microsoft is deepening its commitment to large-scale carbon removal with a new agreement to purchase 7 million carbon dioxide removal (CDR) credits from Chestnut Carbon. The credits will be delivered over a 25-year period from the Chestnut Sustainable Restoration Project, a major afforestation initiative in the southern United States registered under Gold Standard.

Forest restoration initiative in the southern U.S.. AI generated picture.

The deal builds on an initial contract signed at the end of 2023, further strengthening Microsoft’s role as the most prominent corporate buyer of CDR credits. Chestnut Carbon, the US-based developer behind the project, highlighted the significance of this expansion.

"This agreement reflects one of the largest carbon removal projects in the US, inclusive of both nature-based and engineered solutions," the company stated.

Microsoft has been aggressively expanding its carbon removal portfolio, securing more than 17.5 million CDR credits through various agreements last year, according to data from Quantum. The tech giant's sustained investment underscores its commitment to meeting its ambitious climate goals.

With Microsoft’s backing, Chestnut Carbon plans to expand its afforestation, reforestation, and revegetation (ARR) portfolio to 500,000 acres (202,000 hectares) by 2030. The project aims to remove 100 million tonnes of CO2 over a 50-year crediting period, issuing credits based on carbon removal rather than emissions avoidance.

Financial details of the agreement have not been disclosed. However, it follows a 15-year offtake agreement signed in December 2023, in which Microsoft committed to purchasing an initial 326,000 CDR credits, scaling up to 2.7 million over the contract's duration.

This latest move comes alongside Microsoft’s recent deal with Brazil-based developer Re.green for 3.5 million CDR credits from ARR projects. These high-profile investments highlight Microsoft’s continued focus on leveraging both nature-based and engineered solutions to address carbon removal at scale.

As corporate demand for CDR credits grows, Microsoft’s approach signals a shift towards long-term, large-scale carbon removal projects that integrate sustainability into global business strategies.