Microsoft has signed an agreement with Rubicon Carbon to purchase 18 million tons of CO₂ worth of carbon credits over 15 to 20 years. The credits will come from reforestation, afforestation, and land restoration projects in various regions of the world. Financial terms of the deal were not disclosed.

Context of the deal

Microsoft is the largest corporate buyer of carbon credits. In 2024, the company stepped up its purchases of such units as part of its strategy to achieve carbon negativity by 2030. According to the stated goals, the corporation plans to not only offset current emissions, but also neutralize cumulative CO₂ emissions since its founding in 1975.

Sources of carbon credits

Projects included in the agreement are based on natural methods of carbon sequestration:

• Reforestation
• Afforestation
• Reclamation of degraded lands

In addition, Microsoft is considering technology solutions such as:

• Direct Air Capture (DAC)
• Bioenergy with Carbon Capture and Storage (BECCS)

Verification methods

Rubicon Carbon announced the use of satellite data and remote sensing to monitor carbon storage. Microsoft, in turn, audits projects for compliance with internal quality standards.

Importance for the carbon market

The voluntary carbon market faces criticism due to the risk of unreliability of credits. Large deals like this can help develop stricter verification standards.

Conclusion

The agreement between Microsoft and Rubicon Carbon is one of the largest in the corporate sector. Its implementation will depend on the effectiveness of the selected projects and the further development of carbon removal technologies.