Microsoft's commitment to achieving carbon negativity by 2030 signifies a monumental stride in tackling the pressing global carbon crisis. In this ambitious endeavour, Microsoft sets forth a multifaceted approach, aspiring not merely to curtail its carbon emissions but to actively counterbalance its environmental impact. By targeting a state of carbon negativity by 2030, Microsoft signifies its dedication to mitigating the consequences of its historical carbon footprint. This commitment extends further, envisioning a future where, by 2050, it will have effectively erased all the carbon it has ever emitted, both directly and through electrical consumption, since its inception in 1975.
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The concept of carbon negativity embodies a proactive stance on environmental responsibility. By committing to being carbon negative (also called carbon positive), Microsoft pledges not only to minimise its carbon emissions but to go beyond, actively removing more carbon from the atmosphere than it releases. This signifies a significant departure from the traditional notion of carbon neutrality, where companies offset emissions through various means. Microsoft's vision of carbon negativity is a bold acknowledgement of the need for restorative action, aligning with the urgency of global environmental imperatives. This commitment underscores its determination to play a pivotal role in reshaping the trajectory of environmental impact, setting a precedent for corporate responsibility for nature.
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In practical terms, Microsoft's carbon reduction initiatives are outlined in a comprehensive plan. It seeks to cut its carbon emissions by more than half by 2030, addressing not only direct emissions but also those embedded in its supply and value chains. Key strategies include transitioning to 100% renewable energy by 2025 and electrifying the global campus operations–vehicle fleet by 2030, reflecting a commitment to sustainable practices throughout its operations.
Recognising the significance of indirect emissions represented by Scope 3, Microsoft has committed to becoming carbon-negative for all three scopes by 2030. Scope 3 emissions, covering activities throughout the supply chain, are acknowledged as a substantial portion of the overall carbon footprint, necessitating a comprehensive approach for effective reduction.
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Furthermore, Microsoft's commitment extends beyond reduction to active removal of carbon from the environment. By 2030, it aims to remove more carbon than it emits, setting the stage for a complete removal of all historical emissions by 2050. The envisioned portfolio of negative-emission technologies includes afforestation, reforestation, soil carbon sequestration, bioenergy with carbon capture and storage (BECCs), and direct air capture (DAC), reflecting a holistic and forward-thinking approach to environmental sustainability.
Read more: Microsoft invests in nearly 1 million nature-based carbon credits
Carbon credits from Mexican forest restoration: The Conhuás Project
In a significant step towards offsetting its carbon emissions, Microsoft secured 234,000 carbon credits from the Conhuás forest restoration project in southern Mexico. This initiative, launched in 2021, regenerates over 47,000 hectares of tropical rainforest, providing essential ecosystem services like carbon sequestration, water filtration, and habitat preservation. The Conhuás project integrates community engagement into its environmental efforts, with revenue from the sale of carbon credits reinvested into the local communities, supporting families and protecting endangered species such as the Baird’s tapir and jaguar.
Read more: Microsoft secures 234,000 carbon credits from Mexican forest
This initiative exemplifies the benefits of integrating community participation with environmental restoration, strengthening both ecological resilience and community development. Through projects like Conhuás, Microsoft’s commitment to nature-based carbon removal is visible not only in climate action but also in fostering local livelihoods.
Tackling AI-induced emissions: partnership with Occidental petroleum
Microsoft's rapid expansion of its artificial intelligence (AI) operations has significantly increased its emissions, particularly from the energy-intensive data centers powering its AI models. To address this, Microsoft has entered into a groundbreaking partnership with Occidental Petroleum, committing to purchase 500,000 carbon credits generated through direct air capture (DAC) technology. This agreement marks one of the largest transactions of its kind and showcases the innovative steps Microsoft is taking to reduce emissions directly associated with AI developments.
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Occidental's DAC facility in West Texas, known as the Stratos project, will be the largest of its kind, commencing operations next year. This project is part of a broader strategy to use advanced technologies like DAC to manage carbon emissions, further supporting Microsoft's long-term goal of achieving carbon negativity by 2030.
Historic carbon offset sale: 8 million credits from BTG Pactual
In another key development, Microsoft acquired 8 million carbon offset credits from BTG Pactual’s forestry division, the largest transaction of its kind to date. The credits are part of a $1 billion reforestation initiative in Latin America, which focuses on restoring 135,000 hectares of natural forests and creating sustainable tree farms on an additional 135,000 hectares.
Read more: Historic carbon offset sale: Microsoft acquires 8 million credits
This large-scale reforestation project, advised by Conservation International, contributes not only to carbon sequestration but also to biodiversity enhancement and community development. By planting over 7 million seedlings and restoring 2,600 hectares of natural forest, this initiative highlights Microsoft's significant investments in nature-based carbon removal efforts, positioning itself as a leader in corporate sustainability and environmental responsibility.
North American forest management: 1 million nature-based credits
Microsoft further expanded its carbon credit portfolio by investing in nearly 1 million nature-based carbon credits sourced from North American forest management projects. These credits come from sustainable forestry initiatives managed by Anew Climate, LLC, which promotes long-term carbon sequestration and ecosystem preservation across over 10 million acres of forestland.
Read more: Microsoft invests in nearly 1 million nature-based carbon credits
These projects, involving organisations like Acadian Timber Corp. and Aurora Sustainable Lands, provide financial incentives to landowners to manage their forests sustainably. This agreement underscores the importance of market-based approaches in preserving ecosystems, as Microsoft continues to bolster its sustainability initiatives, working towards its ambitious carbon-negative goal.
AI emissions push Microsoft to new carbon deal
Microsoft has signed a major carbon credit agreement with Occidental Petroleum, valued in the hundreds of millions. The deal aims to offset the emissions surge linked to Microsoft’s growing AI infrastructure, which has driven a nearly 30% rise in the company’s carbon output since 2020. Under the agreement, Occidental will supply 500,000 carbon removal credits over six years, using direct air capture (DAC) technology to pull CO₂ directly from the atmosphere.
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While DAC remains costly and energy-intensive, Occidental anticipates reducing production costs below the market norm of $1,000 per tonne. This partnership reflects the tech sector’s increasing need to address AI-driven emissions and underscores Microsoft's commitment to becoming carbon negative by 2030. The credits will come from the Stratos project in West Texas, poised to become the world’s largest DAC facility.
Tropical restoration: Microsoft invests in Mexico’s carbon-rich forests
Microsoft has acquired 234,000 high-quality carbon dioxide removal (CDR) credits from the Conhuás forest restoration project in Campeche, Mexico. Developed by Toroto under the Climate Action Reserve’s Mexico Forest Protocol, the credits are part of a larger initiative to regenerate over 47,000 hectares of tropical rainforest. This purchase supports Microsoft's 2030 carbon negativity goal while reinforcing the importance of nature-based solutions.
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The Conhuás project intertwines ecosystem restoration with social impact. Revenue from credit sales directly supports local communities, ensuring benefits are reinvested into sustainable livelihoods and conservation. In protecting vital habitats for species like the Baird’s tapir and jaguar, Microsoft is aligning corporate action with biodiversity preservation, showcasing how environmental solutions can uplift both nature and people.
Market leaders: Microsoft and Shell top 2024 carbon credit rankings
Microsoft and Shell have taken the lead as the top carbon credit buyers in the voluntary carbon market in 2024. While both companies are major players in offsetting emissions, their strategies diverge: Shell focuses on large-scale emissions avoidance through low-cost forestry and renewable energy credits, while Microsoft invests in high-quality, high-cost carbon removal technologies like BECCS (bioenergy with carbon capture and storage).
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Microsoft retired 5.5 million credits, with nearly 80% sourced from BECCS projects, including a major deal with Stockholm Exergi. With an average credit price of $189, Microsoft continues to prioritise innovation over scale, reaffirming its 2030 carbon-negative target. In contrast, Shell retired 14.5 million credits at an average of $4.15, mainly from forestry and renewable energy. These contrasting approaches reflect broader market trends, where companies must now choose between impact and affordability in their path to net zero.
Balancing AI and ecology: Microsoft restores forests to offset emissions
To address the sharp rise in emissions from its rapidly growing AI infrastructure, Microsoft has secured 3.5 million carbon credits over the next 25 years. These credits support large-scale forest restoration in Brazil, covering 33,000 hectares across the Amazon and Atlantic Forests. This move reflects Microsoft's response to the 30% emissions increase since 2020, driven largely by the energy demands of AI-related data centre expansion.
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In partnership with Re.green, Microsoft has already planted over 4.4 million seedlings from 80 native species. The latest efforts focus on degraded land in Maranhão, Pará, Bahia, and Vale do Paraíba, aiming to restore biodiversity, improve habitat connectivity, and foster long-term ecological resilience. As AI infrastructure grows, this initiative underscores Microsoft’s strategy of pairing technological advancement with nature-based carbon removal solutions.
Microsoft doubles down on nature-based carbon removal in the US
Microsoft has signed a major new deal with Chestnut Carbon to acquire 7 million carbon dioxide removal (CDR) credits over the next 25 years. Building on an earlier 15-year offtake agreement signed in 2023, this expanded partnership supports the Chestnut Sustainable Restoration Project—an afforestation and reforestation initiative registered under the Gold Standard and based in the southern United States.
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The project is set to scale to 500,000 acres by 2030 and targets the removal of 100 million tonnes of CO₂ over five decades. Microsoft’s continued investment in high-quality carbon removal reinforces its leadership in corporate green action, with over 17.5 million CDR credits secured last year alone. This latest move complements its recent 3.5 million-credit deal with Brazil’s Re.green, illustrating Microsoft’s strategy of combining nature-based and engineered solutions to meet its carbon-negative 2030 goal.
Scaling carbon removal: Microsoft signs trio of landmark offset deals
Microsoft has cemented its leadership in engineered carbon removal with three major agreements totalling 11.8 million tonnes of CO₂. These deals span industrial carbon capture, BECCS (bioenergy with carbon capture and storage), and enhanced reforestation—each chosen to help Microsoft stay on course toward its goal of becoming carbon negative by 2030.
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The lineup includes a 12-year partnership with CO280 to retrofit pulp mills for industrial carbon capture, a $800 million BECCS deal with AtmosClear to remove 6.75 million tonnes of CO₂ in Louisiana, and a reforestation initiative with Living Carbon using enhanced photosynthesis trees across 25,000 acres in Appalachia. Together, these high-integrity carbon removals mark a shift in Microsoft's green strategy—from compensating emissions to investing in permanent, verifiable environmental solutions at scale.
Microsoft accelerates carbon removal with 18 million-credit megadeal
In its largest carbon removal deal to date, Microsoft has secured 18 million carbon dioxide removal (CDR) credits through a multi-year agreement with Rubicon Carbon. Acting as Microsoft’s global intermediary, Rubicon will supply high-quality credits from afforestation, reforestation, and revegetation (ARR) projects, with offtake contracts spanning 15 to 20 years. The agreement marks a new chapter in Microsoft’s 2030 carbon-negative roadmap and highlights its leadership in the voluntary carbon market.
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To uphold rigorous environmental and investment standards, Rubicon co-developed a bespoke credit evaluation framework tailored to Microsoft’s scientific criteria. The deal also signals a market shift: Long-term demand for removals is now driving infrastructure-grade investment. With 12 of the 17 million CDR commitments globally in Q1 2024 coming from Microsoft, the tech giant continues to redefine corporate environmental leadership through scaled, science-backed removals.
Forest first: Microsoft locks in 4.8M credits from US forestlands
Microsoft has signed a 10-year agreement to secure 4.8 million carbon removal credits from improved forest management (IFM) projects across the United States. Partnering with Anew Climate and Aurora Sustainable Lands, the deal expands on a previous 2024 collaboration and deepens Microsoft’s commitment to high-integrity, nature-based solutions in its carbon removal strategy.
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The credits will support sustainable forest practices on over 425,000 acres in states such as New York, Virginia, and Florida. Aurora—a joint venture managing 1.7 million acres—applies IFM techniques to increase natural carbon storage, while Anew provides technological monitoring via its Epoch Evaluation Platform. This agreement, alongside Microsoft’s recent soil and forest carbon deals, demonstrates its growing reliance on verifiable ecosystem-based solutions to meet its carbon-negative 2030 goal.
Microsoft's approach to addressing the carbon crisis goes beyond conventional measures. Its commitment to carbon negativity, coupled with a comprehensive set of initiatives and a focus on technological innovation, positions Microsoft as a leader in the global effort to restore nature.
In Microsoft's pursuits, we witness the transformative power of corporate responsibility in steering towards a sustainable future. Biochar and other nature-based solutions exemplify impactful approaches that extend benefits to the environment, biodiversity, and society.
At DGB Group, our commitment aligns with this vision as we passionately advocate for the restoration of nature through a diverse set of nature-based solutions. This includes reforestation, afforestation, biodiversity restoration, and land revitalisation. Our array of solutions empowers businesses, investors, and individuals to actively engage in transparent and impactful investments for the preservation and enhancement of nature. Let's unite in fostering a harmonious relationship with nature, collectively nurturing and safeguarding our environment for generations to come.
