Microsoft Secures Over 7 Million Tons of Carbon Removal Credits in Landmark Deal with Chestnut Carbon

Microsoft has signed a 25-year agreement with Chestnut Carbon to purchase more than 7 million tons of high-quality carbon removal credits. This represents one of the largest nature-based carbon offtake deals in the U.S. and builds on an initial partnership established in December 2023.

The deal aligns with Microsoft’s objective to become carbon negative by 2030 and supports large-scale forest restoration efforts in the United States.

Chestnut Carbon’s Sustainable Restoration Project will involve planting over 35 million native hardwood and softwood trees, restoring 60,000 acres of marginal agricultural land across Arkansas, Texas, and Louisiana. The project aims to scale its afforestation, reforestation, and revegetation (ARR) portfolio to 500,000 acres by 2030, targeting the removal of 100 million tons of CO2 over 50 years.

Ben Dell, CEO of Chestnut Carbon, stated, “We’re excited to be expanding our collaboration with Microsoft given their market leadership in net zero commitments. Nature-based afforestation solutions remain the most attractive, scalable, and cost-effective means for removing carbon today.”

Brian Marrs, Senior Director of Energy & Carbon Removal at Microsoft, added, “This agreement is another positive step towards our goal to become carbon negative by 2030. We look forward to scaling forest restoration in the U.S. while attracting sophisticated private capital.”

Chestnut’s project is registered with Gold Standard, ensuring that the carbon removal is verified rather than merely avoided. In addition to its climate benefits, the initiative is expected to enhance wildlife habitats, improve air and water quality, and contribute to local economic development.