Microsoft secures 1.5m carbon credits from afforestation project

Microsoft has secured a long-term carbon credit supply agreement with a UK-based project developer, reinforcing its commitment to large-scale nature-based solutions. The deal will see the tech giant acquire 1.5 million carbon removal credits over the next 30 years from an afforestation project in Madhya Pradesh, India.

Aerial view of an afforestation project in Madhya Pradesh, India. AI generated picture.

The initiative, spearheaded by Climate Impact Partners, represents half of the anticipated carbon credit output from the Panna-based project. Spanning 20,000 hectares, the project aims to plant up to 11.6 million native trees, restoring degraded landscapes while generating high-quality carbon removals.

Read more: Greening the blueprint: Microsoft's 2030 carbon negativity roadmap

Afforestation efforts are already underway, with 1.2 million trees planted across 100 community-owned lands in the region. The project has secured investment from Terra Natural Capital, an environmental commodities firm, and stands as Microsoft’s largest carbon removal initiative in the Asia-Pacific region—and its first 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.

Beyond carbon sequestration, the afforestation project is expected to deliver significant socio-economic benefits. It is designed to support sustainable agriculture, improve water conservation, enhance local biodiversity, and create new income opportunities for farmers in the region. Over its lifetime, the project is projected to remove 3 million tonnes of CO₂.

The project follows Verra’s VM0047 afforestation, reforestation, and revegetation methodology and has received an ‘A’ rating from UK-based carbon ratings agency BeZero. Additionally, it will be verified under Verra’s Climate, Community & Biodiversity Standard to ensure the delivery of social and environmental co-benefits.

With Microsoft continuing to ramp up its investment in carbon removal solutions, this agreement underscores the growing role of afforestation projects in global sustainability efforts.

Read more: Microsoft expands carbon removal portfolio with massive 7m new credits

At DGB Group, we specialise in developing large-scale nature-based solutions that turn sustainability commitments into real impact. Just as Microsoft is leveraging afforestation to drive carbon removal and ecosystem restoration, we help businesses and individuals invest in high-quality carbon projects that create lasting environmental and social benefits. Every tree planted and every credit generated brings us closer to a greener future. Ready to make your mark? Explore how you can take action today.