Commercial, Energy Efficiency, GHG Emissions - January 31, 2025
Microsoft Signs 7 Million Ton Carbon Removal Agreement
Microsoft signed a long-term agreement to receive nature-based carbon removal from its afforestation, reforestation and revegetation (ARR) project in the southern U.S., including Arkansas, Texas and Louisiana.
Microsoft signed the agreement with Chestnut Carbon, a nature-based carbon removal developer. The agreement spans 25 years and promises to deliver over 7 million tons of carbon removal credits.
This agreement is an addition to the initial agreement executed between Chestnut and Microsoft in December 2023. This new carbon removal purchase agreement involves multiple phases with forward-starting 25-year terms that will result in over 7 million tons of U.S.-based carbon removal credits delivered to Microsoft over the offtake term. The agreement is estimated to restore roughly 60,000 acres of land by planting over 35 million native, biodiverse hardwood and softwood trees.
The Chestnut Sustainable Restoration Project is distinguished among nature-based projects in the U.S. due to its focus on creating a long-lasting ecosystem of native forests at scale. With Microsoft's offtake from the project, Chestnut is on track to grow its ARR portfolio to 500,000 acres by 2030 and remove 100 million tons of CO2 from the atmosphere over a 50-year crediting period.
"This agreement with Chestnut Carbon is another positive step towards Microsoft's goal to become carbon negative by 2030. We look forward to the prospect of scaling forest restoration within the United States, attracting sophisticated private capital in the process. We are glad to see the Sustainable Restoration Project diversify the ecological impact of our global carbon removal portfolio," said Brian Marrs, Senior Director of Energy & Carbon Removal at Microsoft, in a statement.
The project is registered with Gold Standard and its resulting credits are issued per carbon removal measurements rather than emissions avoidance. The project restores marginal agricultural lands to native forests that would not be restored in the absence of the global carbon credit market.
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