Commercial, Energy Efficiency, GHG Emissions - March 6, 2025
Microsoft Signs Carbon Removal Agreement in India
Software company Microsoft announced it signed a project for carbon removal credits.
Climate Impact Partners announced a new deal with Terra Natural Capital to deliver long-term finance to the Panna afforestation project in India, and Microsoft will purchase 1.5 million tons of verified carbon removal credits over 30 years that represent 50% of the project's output.
The Panna afforestation project is Microsoft's largest carbon removal project in the APAC region and first in India. The project involved three years of due diligence and pilot activities conducted by Climate Impact Partners' project development team as well as third-party buyer and investor assessments.
Working with local implementation partners, the project will plant up to 11.6 million mixed native trees cross 20,000 hectares of farmer and community land. Currently, over 1.2 million trees have been planted across 100 communities.
The project offers significant benefits, including:
- Economic Empowerment: Farmers will directly benefit from a share of carbon credit sales and income generated from the sale of fruit and medicinal produce from the trees planted.
- Sustainable Agriculture: Training programs on climate-smart agricultural techniques will be held to help enhance long-term yields.
- Water Conservation: The project has implemented large-scale water infrastructure, including ponds, borewells, and drip irrigation systems to support tree growth while capturing and conserving water.
- Improved Biodiversity: Planting will focus on native species intended to help enhance biodiversity and attract butterfly and bird species back to currently degraded lands.
"At Microsoft, we believe that high-quality, nature-based solutions are vital to addressing climate change,” said Brian Marrs, Senior Director Energy Markets, Microsoft, in a statement. “Panna forms an important part of our growing portfolio of carbon removal projects – our first in India and largest in the APAC region. The collaboration with Climate Impact Partners helps to ensure that millions more trees are planted, more carbon is removed from the atmosphere, more jobs are created, and more finance flows back to local communities."
The project uses Verra's latest Afforestation, Reforestation and Revegetation Methodology – VM0047 – approved for the ICVCM's (Integrity Council for the Voluntary Carbon Market) CCP (Core Carbon Principle) label. It is rated A under BeZero's ex-ante rating and will be verified to the Climate, Community and Biodiversity Standard to monitor for co-benefits.
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