Microsoft's Bold Move Toward Carbon Negativity with Record Soil Carbon Credits Purchase

Microsoft partners with Indigo Carbon to purchase a record 2.85 million soil carbon credits, marking a significant step towards becoming carbon negative by 2030. This deal highlights the growing importance of soil carbon removal in corporate climate strategies. Farmers and the environment both stand to benefit from this initiative.

In a groundbreaking deal, Microsoft has partnered with Indigo Carbon to purchase a record 2.85 million soil carbon credits in the United States, underscoring its commitment to becoming 'carbon negative' by 2030 even amid challenges posed by AI-related emissions.

The tech giant, already known as the world's largest buyer of carbon removal credits, did not disclose the financial terms of the 12-year agreement, but industry insiders estimate its value between $171 million and $228 million, aligning with the typical pricing of $60 to $80 per ton for Indigo Carbon credits.

This collaboration not only benefits the environment but also financially rewards farmers by allocating 75% of the average weighted credit cost from any issuance or crop year. The partnership signifies an increased demand for carbon credits and underscores their crucial role in corporate climate actions.

(With inputs from agencies.)