Microsoft will acquire around 3.5 million CO₂ certificates from reforestation projects in Brazil over the next 25 years.
The company with a market capitalization of USD 3.2 trillion positions itself as one of the world's largest buyers of CO₂ certificates from nature-based projects. The move comes at a time when demand for generative artificial intelligence is significantly increasing investments in energy-intensive data centers. Despite the promise to reduce emissions, these are increasingly dependent on fossil fuels.
With the inauguration of US President Donald Trump, who sidelines climate protection in favor of promoting fossil energy production, technology companies are under pressure to pursue alternative climate strategies. According to Thiago Picolo, CEO of Re.green, US technology corporations are among the "largest buyers" of CO₂ offsets through nature projects and are decisively driving the market forward.
Microsoft recorded a CO₂ footprint of more than 17 million tons in 2023 - an increase of 40 percent compared to 2020. Despite investments in renewable energy and offset measures, the company remains in search of further reduction strategies to become "carbon negative" by 2030.
The company is investing not only in nature-based solutions but also in technological CO₂ removal methods like Direct Air Capture. Last year, Microsoft made an agreement with the US oil company Occidental Petroleum for 500,000 CO₂ certificates from such a facility.
Nature-based solutions offer advantages for local communities and ecosystems, but they are susceptible to climate risks such as fires or droughts. Nevertheless, they are cheaper than technological solutions, which currently cost several hundred US dollars per ton.
Other major technology companies such as Google, Meta, and Salesforce are increasingly relying on nature-based CO₂ compensation and plan to purchase a total of 20 million tons of such certificates by the end of the decade.
According to estimates by the climate tech start-up Pachama, the price for high-quality nature-based CO₂ certificates is currently up to 82 US dollars per ton. In previous deals, Microsoft paid over 50 US dollars per ton, significantly above the industry average.
With the current agreement, Microsoft underscores its claim to be a leader in the tech industry's climate protection strategy.
