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News > Environmental protection regulations > Microsoft signs carbon removal agreement with carbon offset startup Chestnut Carbon

Microsoft signs carbon removal agreement with carbon offset startup Chestnut Carbon

2023-12-20

Microsoft announced on Wednesday, December 20, that it has reached an agreement with carbon offset startup Chestnut Carbon. The company will receive carbon credits for removing carbon dioxide from the atmosphere, furthering Microsoft's commitment to environmental sustainability.

Chestnut Carbon founder Ben Dell pointed out that compared to other plans, Chestnut Carbon will plant new trees on eligible land to remove carbon dioxide from the atmosphere and create environmental benefits by generating carbon credits by protecting trees.

Microsoft's partnership with Chestnut Carbon will allow the company to earn carbon credits over a 15-year period based on the amount of carbon emissions removed through reforestation by Chestnut Carbon in the Mississippi Floodplain. Microsoft expects to receive the first credits within three years, once the newly planted trees mature and begin removing carbon dioxide.

Microsoft sees carbon removal as a key strategy for achieving its 2030 carbon-negative goal. To date, Microsoft has signed contracts with external parties for over 1.4 million tons of carbon removal projects, including reforestation and carbon capture projects.

Microsoft did not disclose the budget for its partnership with Chestnut Carbon, but said the project will reduce carbon emissions by up to 2.7 million tons. Chestnut Carbon said the partnership with Microsoft will help it acquire new land and develop new carbon removal projects.

Source: Reuters

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