
Microsoft has signed yet another carbon removal deal, this time
buying carbon removal credits from forestry projects in the US.
Anew Climate and sister company Aurora Sustainable Lands this
week announced a 10-year agreement with Microsoft to deliver 4.8
million nature-based carbon removal credits.
The companies said the deal supports one of the largest
permanent working forest carbon removal efforts in the US.
Material volumes of removal credits will begin being delivered
in 2025.
The projects, developed by Anew Climate and owned and managed by
Aurora Sustainable Lands, span forestlands across New York,
Virginia, West Virginia, Kentucky, and Florida. The sites
utilize Improved Forest Management (IFM) to generate
nature-based removal credits.
“We believe transparent and high-integrity nature-based carbon
removal is important to meeting Microsoft’s Carbon Negative 2030
goal,” said Brian Marrs, senior director, energy and carbon
removal at Microsoft. “This agreement with Anew and Aurora
reflects our commitment to advancing the integrity and impact of
improved forest management.”
This is the second deal Microsoft has signed with Anew,
following a deal to deliver more than 970,000 nature-based
carbon removal credits from the latter’s North American forestry
projects last year.
“This agreement sets a new standard for nature-based carbon
removals, pairing technical rigor with environmental stewardship
at scale,” said Angela Schwarz, Anew Climate CEO. “Microsoft’s
collaboration enables innovation that benefits the broader
market and accelerates our collective path to net zero.”
Anew Climate was formed in February 2022 via the combination of
Element Markets, LLC and Bluesource, LLC. It is a portfolio
company of TPG Rise, TPG’s global impact investing platform.
"Aurora Sustainable Lands is distinctive because we are the
landowner and operator, managing everything from root to credit.
This comprehensive approach ensures the highest integrity and
quality of our carbon credits,” said Jamie Houston, CEO of
Aurora Sustainable Lands. “Microsoft, Anew, and Aurora all share
a deep commitment to climate-smart, sustainable practices,
ensuring a healthier planet for future generations.”
As well as signing a large number of renewable energy contracts
to power its operations, Microsoft has been regularly investing
in carbon capture and removal projects as it seeks to reach not
only carbon neutrality but also remove its historical emissions.
In 2025 alone, it has partnered with several reforestation
companies, biochar firms, and Enhanced Rock Weathering
companies.
This is the fifth forestry carbon removal project Microsoft has
signed this year. The company signed an agreement to remove 1.5
million tons of CO2 in India, a 25-year agreement with Chestnut
Carbon to purchase seven million carbon credits, another 25-year
deal in Brazil with Re.green to purchase 3.5 million credits,
and a 1.4 million-ton deal with Living Carbon in the US.
While seen as beneficial, forestry programs have been criticized
due to their potential for limited permanence and the length of
time it takes to scale effective programs.
Source: datacenterdynamics.com