As originally reported by ESG Today, Microsoft has announced a significant new agreement with climate solutions provider Anew Climate to purchase over 970,000 tons of carbon removal credits. These credits will be generated from improved forest management (IFM) projects across the United States.

About Anew Climate

Founded in 2001 and majority-owned by TPG’s impact investing platform TPG Rise, Texas-based Anew Climate specializes in helping companies reduce their carbon footprints and restore the environment. Their solutions include both technological and nature-based approaches, as well as the marketing of environmental credits for low carbon fuel, carbon, renewable energy, and emissions markets.

Details of the Carbon Removal Agreement

The carbon credits under this new agreement will be derived from IFM projects on forestlands owned by Aurora Sustainable Lands, Acadian Timber Corp., and Baskahegan Company. IFM projects not only avoid net carbon emissions but also remove carbon from the atmosphere. Anew’s projects generate carbon removal credits recognized by registries, thanks to tree growth within its forestry portfolio.

Anew Climate’s Role

Lizzie Aldrich, Vice President of Business Development at Anew Climate, expressed pride in partnering with Microsoft, stating:

“Anew is proud to be part of Microsoft’s sustainability journey. Microsoft is a shining example among climate-conscious companies and known for its rigorous due diligence and focus on quality. At Anew, we are leading the way to help companies and landowners achieve meaningful, positive change for the climate.”

Microsoft’s Carbon Negative Goal

This agreement is part of Microsoft's broader initiative to become carbon negative by 2030. The tech giant has engaged in several large-scale nature-based carbon removal agreements, including a recent 3 million ton reforestation-based deal with re.green in May. Additionally, Microsoft, along with Google, Meta, and Salesforce, has launched a 20-million ton advance market commitment (AMC) to support the growth of the nature-based carbon removal market.

Financial Incentives for Sustainable Practices

Brian Marrs, Senior Director of Energy and Carbon Removal at Microsoft, highlighted the financial incentives of carbon removal credits:

“Carbon removal credits provide a financial incentive for traditional institutional landowners and managers to shift to sustainable forestry and land management practices. We are pleased to collaborate with Anew Climate to help increase the carbon stocks of forests across the United States.”