Microsoft Secures Agreement for Forestry Management-Enabled Carbon Reduction of 4.8 Million Tons
Microsoft has signed a significant 10-year agreement with climate solutions provider Anew Climate and its sister company Aurora Sustainable Lands. The deal, worth 4.8 million nature-based carbon removal credits, will primarily be generated through Improved Forest Management (IFM) projects in the United States.
The agreement marks the second time Microsoft, Anew, and Aurora have collaborated, following a 970,000 ton carbon removal agreement announced last year. This latest deal is part of Microsoft's broader goal to become carbon negative by 2030, removing more carbon than it emits annually.
The forestry projects covered by the agreement span multiple U.S. states, including New York, Virginia, West Virginia, Kentucky, and Florida. Aurora Sustainable Lands, a joint venture between Anew Climate and equity investors, manages approximately 1.7 million acres of former industrial forestland across these regions.
The carbon removal credits will be generated through IFM, a science-backed, nature-based solution that involves managing forests differently to store more carbon, such as lengthening harvest cycles, selective thinning, or protecting forests from deforestation. These projects are developed by Anew Climate and owned and managed by Aurora Sustainable Lands.
Aurora Sustainable Lands' comprehensive approach ensures the highest integrity and quality of its carbon credits. The company's carbon stewardship strategy is focused on maximizing natural carbon removal and storage potential. The new agreement will utilize Anew's Epoch Evaluation Platform for location-specific tracking and validation of forest carbon baselines.
Anew Climate, founded in 2001 and majority-owned by TPG's impact investing platform TPG Rise, provides climate solutions aimed at reducing carbon footprints and restoring the environment. The company markets carbon credits generated from Aurora's projects.
Microsoft is by far the largest corporate buyer of carbon removal credits globally, having contracted nearly 22 million tons of carbon removal last year alone. This latest agreement underscores Microsoft's commitment to advancing the integrity and impact of improved forest management.
The deal supports one of the largest permanent working forest carbon removal efforts in the U.S. and will protect over 425,000 acres of forestland across the stated regions. Aurora Sustainable Lands, led by Oak Hill Advisors, AB CarVal, EIG, and GenZero, aims to continue its mission of sustainable forest management and high-integrity carbon credit production.
[1] Microsoft. (2022, March 30). Microsoft expands carbon removal efforts with new agreement to purchase 4.8 million nature-based carbon removal credits. Microsoft on the Issues. https://news.microsoft.com/2022/03/30/microsoft-expands-carbon-removal-efforts-with-new-agreement-to-purchase-4-8-million-nature-based-carbon-removal-credits/
[2] Anew Climate. (2022, March 30). Microsoft and Anew Climate Announce New 10-Year Carbon Removal Agreement. Anew Climate. https://anewclimate.com/news/microsoft-and-anew-climate-announce-new-10-year-carbon-removal-agreement
[3] Aurora Sustainable Lands. (2022, March 30). Microsoft and Anew Climate Announce New 10-Year Carbon Removal Agreement. Aurora Sustainable Lands. https://www.aurorasustainablelands.com/news/microsoft-and-anew-climate-announce-new-10-year-carbon-removal-agreement
- Microsoft's 10-year agreement with Anew Climate and its sister company Aurora Sustainable Lands, valued at 4.8 million nature-based carbon removal credits, is part of Microsoft's aim to become carbon negative by 2030.
- The deal with Microsoft is a testament to Anew Climate's commitment to providing climate solutions, such as reducing carbon footprints and restoring the environment.
- Technology plays a crucial role in the agreement, with Anew's Epoch Evaluation Platform being used for location-specific tracking and validation of forest carbon baselines.
- This significant carbon removal agreement, amongst other business ventures, underscores the vital role finance and technology can play in environmental-science and impact investing, particularly in climate-change solutions like carbon removal and improved forest management.
