Microsoft's Record Soil Carbon Deal Boosts 2030 Green Goal | Quick Digest
Microsoft has inked a record multi-million dollar deal to acquire 2.85 million soil carbon credits from Indigo Ag over 12 years, advancing its goal to become carbon-negative by 2030. This landmark agreement, estimated between $171 million and $228 million, supports regenerative agriculture in the U.S. and highlights Microsoft's global climate strategy.
Microsoft purchases 2.85 million soil carbon credits from Indigo Ag.
Deal is a record for soil carbon credits, valued up to $228 million.
Supports Microsoft's global commitment to be carbon-negative by 2030.
Credits are generated through regenerative agriculture in the United States.
Microsoft also secured credits from Varaha (India) and Kijani Forestry (Uganda).
Previous record was 2.6 million credits from Agoro Carbon.
Microsoft has made a significant stride towards its ambitious goal of becoming 'carbon negative' by 2030, signing a record multi-million dollar deal to purchase soil carbon credits. The technology giant has agreed to acquire 2.85 million soil carbon credits from U.S.-based regenerative agriculture company, Indigo Ag (also referred to as Indigo Carbon), over a 12-year period. This transaction marks one of the largest soil carbon removal agreements to date, showcasing a growing corporate commitment to nature-based climate solutions. While Microsoft has not publicly disclosed the exact financial terms, industry reports, citing sources familiar with the deal, estimate its value to be between $171 million and $228 million, based on prevailing credit prices.
The purchased credits are generated through regenerative agriculture practices implemented by American farmers, which are crucial for sequestering carbon in the soil, enhancing soil health, and improving water retention and biodiversity. This move follows Microsoft's previous record soil carbon deal of 2.6 million credits with Agoro Carbon.
Beyond this significant soil carbon deal, Microsoft is actively diversifying its carbon removal portfolio globally. The company recently entered into an agreement to purchase over 100,000 tons of carbon dioxide removal credits from India's Varaha over the next three years, underscoring its engagement with solutions in the Indian market. Additionally, Microsoft has partnered with Rubicon Carbon to source two million Afforestation, Reforestation, and Revegetation (ARR) credits from Kijani Forestry's smallholder farmer project in Northern Uganda through 2035, as part of a larger framework to acquire up to 18 million tonnes of credits. These multi-country initiatives demonstrate Microsoft's comprehensive strategy to offset its increasing emissions, particularly those associated with its burgeoning data centers and AI operations.
Read the full story on Quick Digest