Microsoft Signs Another Reforestation-Based Carbon Removal Megadeal

Microsoft and nature-based climate solutions startup re.green have announced a major carbon removal agreement. Microsoft will purchase 3 million tons of carbon removal credits over a 15-year period through re.green’s reforestation projects in Brazil.

This is Microsoft’s second significant reforestation deal in Brazil, following a 1.5 million ton agreement with Mombak in December 2023. These initiatives are part of Microsoft’s commitment to becoming carbon negative by 2030.

While Microsoft prioritizes reducing its greenhouse gas footprint, the company has engaged in numerous carbon removal deals, including those involving direct air capture, ocean-based carbon removal, and biochar projects. Recently, Microsoft signed the largest-ever engineered carbon removal agreement with Swedish energy company Stockholm Exergi, to purchase over 3.3 million tons of carbon removal.

Brian Marrs, Senior Director for Energy & Carbon Removal at Microsoft, emphasized the importance of high-quality, nature-based solutions in addressing climate change. He expressed enthusiasm for the partnership with re.green, highlighting the role of such projects in Microsoft’s carbon removal strategy.

Re.green, based in Rio de Janeiro, aims to restore one million hectares of degraded land in the Amazon and Atlantic forests in Brazil. Their goal is to capture 15 million tons of carbon per year, while conserving biodiversity and supporting local communities. The restoration process includes selecting degraded lands through spatial analysis technology, using native species restoration models, training local communities, and actively monitoring forest recovery.

The agreement with Microsoft is re.green’s largest project to date, targeting the restoration of over 16,000 hectares of degraded pastureland and the planting of at least 10.7 million trees. The projects will use all-native species, support biodiversity, and promote workforce development. Re.green will measure and verify project progress through remote sensing, drones, and cloud-based analytics.

Re.green CEO Thiago Picolo praised Microsoft’s carbon removal program as a global benchmark for high-integrity carbon removal, emphasizing the market’s potential for growth in Brazil and committing to further partnerships.