Microsoft has signed a deal to acquire up to 8 million nature-based carbon dioxide removal (CDR) credits by 2043 from projects supported by Brazilian investment bank BTG Pactual. This move is part of Microsoft's ongoing effort to expand its carbon removal portfolio.
The credits will come from initiatives that focus on the restoration of natural forests and the establishment of sustainably managed tree farms, each covering a total area of 135,000 hectares. These projects are integral to Microsoft’s strategy to achieve its carbon-negative goals through innovative, scalable solutions.
"Advancement towards Microsoft’s carbon negative goals necessitates innovative projects that can swiftly and sustainably scale carbon removal,” said Brian Marrs, senior director for energy and carbon removal at Microsoft. “This project exemplifies how reforestation and restoration can deliver carbon removal at scale while supporting local communities and restoring vital ecosystems,” he added.
The deal was signed with the BTG Pactual Timberland Investment Group (TIG), a US-based forestry asset manager and subsidiary of the Brazilian bank. TIG is investing $1 billion in reforestation projects across Latin America. The projects will be developed in partnership with NGO Conservation International, which will act as an impact adviser.
Microsoft’s acquisition of nature-based credits is a continuation of its efforts to implement carbon removal solutions. In 2024, Microsoft surpassed the 5 million tonnes of carbon dioxide equivalent from CDR projects it purchased in 2023. Recent deals include a 3.33 million tCO2e bioenergy with carbon capture and storage (BECCS) agreement with Swedish utility Stockholm Exergi, and a 3 million tCO2e deal for afforestation, reforestation, and revegetation with Brazilian project developer Re.Green.
Last month, Microsoft announced its participation in a reforestation project in Panama and joined a coalition with Google, Meta, and Salesforce aimed at procuring 20 million CDR credits by 2030. These collaborations underscore Microsoft’s commitment to leveraging innovative and scalable projects to achieve significant carbon removal and contribute to global reforestation efforts.
Microsoft’s deal to purchase 8 million carbon removal credits from Latin American reforestation projects demonstrates its dedication to combating climate change through sustainable and scalable solutions. By partnering with BTG Pactual and Conservation International, Microsoft is not only advancing its carbon-negative goals but also supporting local communities and restoring vital ecosystems. This initiative is a crucial step in Microsoft’s broader strategy to address environmental challenges and promote global sustainability.