Microsoft has reinforced its position as the largest buyer of carbon dioxide removal (CDR) credits with a new agreement to acquire 7 million credits. The credits will be supplied over a 25-year period, marking one of the most substantial offtakes of its kind.
Reforestation project in the Southern United States. AI generated picture.
The deal with US-based developer Chestnut Carbon builds upon an existing arrangement between the two companies, originally signed at the end of 2023. Chestnut Carbon's Chestnut Sustainable Restoration Project, registered under the Gold Standard, focuses on afforestation and restoration efforts in the southern United States.
‘This agreement reflects one of the largest carbon removal projects in the US, inclusive of both nature-based and engineered solutions’, Chestnut Carbon stated.
In December 2023, Microsoft and Chestnut Carbon signed a 15-year offtake agreement for an initial 326,000 CDR credits, increasing to 2.7 million credits over the duration of the contract. The latest expansion further underscores Microsoft’s commitment to long-term carbon removal strategies.
Microsoft’s aggressive procurement of CDR credits has positioned it at the forefront of corporate carbon removal initiatives. According to data from Quantum, the tech giant secured over 17.5 million CDRs through various agreements last year.
Read more: Greening the blueprint: Microsoft's 2030 carbon negativity roadmap
By securing Microsoft’s continued support, Chestnut Carbon expects to scale its afforestation, reforestation, and revegetation (ARR) portfolio to 500,000 acres (202,000 hectares) by 2030. The company aims to remove 100 million tonnes of CO2 over a 50-year crediting period, with credits issued based on carbon removed rather than emissions avoided. The financial details of the transaction were not disclosed.
Beyond this deal, Microsoft recently announced a separate agreement with Brazil-based developer Re.green for 3.5 million CDR credits from ARR projects. These investments signal its ongoing drive to meet its carbon removal targets through a combination of nature-based and engineered solutions.
Read more: Microsoft secures 3.5 million carbon credits to offset AI’s energy demands
At DGB Group, we empower businesses and individuals to take meaningful action in reducing their carbon footprints through high-impact nature-based solutions. By restoring ecosystems and expanding forests worldwide, we ensure that every investment in carbon compensation supports a healthier planet. Microsoft’s latest commitment to large-scale carbon removal highlights the growing role of afforestation in balancing emissions and delivering long-term environmental and economic benefits. Now is the time to be part of this movement. Join DGB in making a tangible impact—discover how you can start compensating for your carbon footprint today.
