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Microsoft signs 10-year carbon removal deal with Anew Climate
[Jun 27, 2025]


 

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



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