Microsoft, opens new tab has agreed with Indigo Carbon to buy a record 2.85 million soil carbon credits linked to regenerative agriculture in the United States, as the tech giant aims to become “carbon negative” by 2030 despite surging emissions linked to AI.
While Microsoft – the world’s biggest buyer of carbon removal credits – did not disclose the cost of the 12-year tie-up, a person with knowledge of the deal said it falls within the historic range of US$60 to US$80 a ton for Indigo Carbon’s credits, which would value the deal at between US$171 million and US$228 million.
Regenerative farming covers a range of actions such as reducing tilling, using cover crops and letting livestock graze to improve the ability of the soil to capture climate-damaging carbon emissions and retain water.
Market data firm Sylvera said it had seen an increase in demand for such credits last year, including a deal by Microsoft for 2.6 million credits from Agoro Carbon, which previously held the record for the biggest deal.
Read further here.
