Microsoft [MSFT:US] has signed an offtake agreement with Carbonfuture, a leading carbon removal solutions provider, to attain biochar carbon removal (BCR) credits from the Exomad Green Concepción project located in Bolivia, as reported by ESG Today on December 14. The Exomad Green project transforms forestry waste, which would otherwise have been burnt, into biochar to promote soil fertility and reduce carbon emissions. Furthermore, it creates other environmental advantages such as reducing fire risks and promoting sustainable timber management in indigenous communities. The deal will deliver more than 32,000 tons of carbon dioxide (CO2) removal credits to Microsoft by June 2024, marking one of the largest BCR purchase agreements to date.

The agreement marks a further expansion of Microsoft’s diverse portfolio of carbon removal initiatives, contributing to the company’s commitment to becoming carbon-negative by 2030 and removing all of its historical emissions by 2050. So far, the company has announced a series of carbon credit offtake agreements with companies fixated on direct air capture (DAC), ocean-based carbon removal, and nature-based reforestation projects. According to Microsoft, BCR serves as the pillar of its medium-durability portfolio of carbon removal, bridging the durability and cost gap between shorter-duration solutions such as afforestation, and longer-duration but higher-cost solutions such as DAC.

Sources:

https://www.esgtoday.com/microsoft-signs-one-of-largest-to-date-biochar-carbon-removal-deals/

https://carbonherald.com/carbonfuture-microsoft-sign-offtake-agreement-biochar-carbon-removal/

Microsoft Signs Deal to Buy Biochar Carbon Removal Credits