Microsoft Signs Another Reforestation-Based Carbon Removal Megadeal

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Microsoft Signs Another Reforestation-Based Carbon Removal Megadeal

Microsoft and nature-based climate solutions startup announced one of the largest-ever carbon removal agreements, with Microsoft purchasing 3 million tons of carbon removal credits over a 15-year period, generated through’s reforestation projects in Brazil.

The deal marks the second large-scale Brazil reforestation-focused carbon removal agreement for Microsoft, following a 1.5 million ton offtake deal with Brazil-based Mombak in December 2023, and further builds Microsoft’s increasingly prolific carbon removal portfolio, forming part of the tech giant’s initiative to become carbon negative by 2030.

While Microsoft has noted that it takes a reductions-first strategy to addressing its greenhouse gas footprint, the company has announced a series of deals over the past several months to support and participate in the carbon removal market, with agreements spanning a wide range of technologies and approaches including, direct air capture (DAC), ocean-based carbon removal, and biochar-based projects. Earlier this month, Microsoft signed the largest-ever engineered carbon removal deal globally to date to purchase more than 3.3 million tons of carbon removal from Swedish energy company Stockholm Exergi. Many of the company’s larger carbon removal deals are focused on nature-based solutions, including recent announcements agreements with Chestnut Carbon and with Mombak.

Brian Marrs, Senior Director for Energy & Carbon Removal at Microsoft, said:

High-quality, nature-based solutions are vital to addressing climate change and we are excited to pursue this offtake deal in Brazil with Projects like those undertaken by are an important part of our carbon removal portfolio.”

Based in Rio de Janeiro, aims to restore one million hectares of degraded land in the Amazon and Atlantic forests in Brazil, with a goal to capture 15 million tons of carbon per year, in addition to conserving biodiversity, sustainably managing forest products and supporting the empowerment of local communities. The company’s forest restoration process includes selecting degraded lands through internally developed spatial analysis technology, using restoration models based on native and regional species, engaging and training local communities to support the restoration and protection of forests, while generating income and preserving the projects, and actively monitoring forest restoration and recovery, enabling the company to market high-quality carbon credits and forest solutions.

The agreement with Microsoft marks’s largest carbon removal project to date, aimed at restoring more than 16,000 hectares of degraded pastureland, and planting at least 10.7 million trees in the Amazon and Atlantic forests, including the most deforested biome in Brazil, with the projects featuring all-native species, supporting biodiversity conservation and workforce development. will also measure and verify the progress of the projects through technologies including remote sensing, drones, and cloud-based analytics. CEO Thiago Picolo said:

“We consider Microsoft’s carbon removal program to be a global benchmark for high integrity carbon removal and a leader in scientific advancement, validating our trajectory. This collaboration serves as tangible evidence that this market not only exists but has significant potential for growth in Brazil. We are committed to forging additional partnerships of this caliber.”

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