Microsoft is creating quite a buzz in the realm of carbon offsets with two major deals aimed at fighting climate change. They’ve joined forces with BTG Pactual Timberland Investment Group (TIG) and Indigo Ag to drive significant environmental impact. Let’s explore the details of these groundbreaking agreements and what they mean for our planet’s future.
The Big Deal with TIG
Microsoft has inked a historic deal with TIG, committing to purchase 8 million carbon removal credits by 2043. This marks the largest carbon dioxide removal transaction ever recorded! These credits come from TIG’s ambitious reforestation and restoration projects in Latin America. Picture it as a $1 billion initiative to breathe new life into deforested regions, especially the crucial Cerrado biome in Brazil.
TIG’s plan is quite impressive: they aim to restore 135,000 hectares of natural forests and establish sustainable commercial tree farms on another 135,000 hectares. So far, they’ve invested in 37,000 hectares, planted over 7 million seedlings, and started restoring 2,600 hectares of natural forest. Gerrity Lansing, Head of TIG, highlighted that institutional investors are key in delivering large-scale, nature-based solutions for climate and biodiversity.
Microsoft’s Climate Goals
This mega-deal aligns perfectly with Microsoft’s ambitious climate goals. The tech giant aims to be carbon-negative by 2030 and to remove all its historical emissions by 2050. They’re working on reducing their Scope 1 and 2 emissions (the direct emissions from their operations) by boosting energy efficiency, decarbonizing operations, and achieving 100% renewable energy by 2025.
But here’s the kicker: over 96% of Microsoft’s emissions come from Scope 3 sources—everything in their value chain, like purchased goods and services. To tackle these, they need large-scale, high-quality carbon removal projects. That’s where innovative partnerships like the one with TIG come into play. Brian Marrs, Microsoft’s Senior Director for Energy & Carbon Removal, emphasized the need for projects that can scale quickly and sustainably.
More Forests, Please!
Microsoft isn’t stopping with TIG. They’ve also acquired 970,000 forest carbon removal credits from Anew Climate. These credits come from improved forest management projects across lands owned by Aurora Sustainable Lands, Acadian Timber Corp., and Baskahegan Company. These projects help prevent net carbon emissions and draw carbon out of the atmosphere, contributing to Microsoft’s goal of large-scale carbon removal.
Digging into Soil Carbon Credits with Indigo Ag
In another groundbreaking move, Microsoft has agreed to buy 40,000 agricultural soil carbon credits from Indigo Ag’s third carbon crop. This is the largest number of credits ever sold by Indigo Ag to a single buyer. These soil-based credits are verified by the Climate Action Reserve’s Soil Enrichment Protocol, ensuring they’re robust and science-backed.
Indigo Ag’s carbon program supports farmers in adopting and maintaining practices that generate these valuable credits. Their measurement, reporting, and verification (MRV) capabilities ensure the credits’ integrity and durability. So far, Indigo’s Sustainability Solutions have reduced and removed over 340,000 tons of greenhouse gas emissions and saved over 19 billion gallons of water used in agriculture.
What Does It All Mean?
These landmark deals highlight Microsoft’s commitment to combating climate change through nature-based solutions. By investing in large-scale carbon removal projects, they’re not just reducing their carbon footprint—they’re also setting a powerful example for other companies to follow. The collaboration with TIG and Indigo Ag shows that with the right partners and innovative approaches, significant strides towards a more sustainable and low-carbon future are possible.
In short, Microsoft’s big moves in carbon offsets are a win for the planet and a blueprint for corporate climate action. Here’s hoping more companies make bold commitments that will help us all breathe a little easier.
*Please note that some of the content provided in Greg Keough’s blog may have been generated with the assistance of AI technology, enhancing both the depth and breadth of information presented*
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