- Microsoft secures 1.5 million tonnes of carbon removal credits from the Panna afforestation project in India, its largest carbon removal initiative in the APAC region.
- The 20,000-hectare project, backed by Terra Natural Capital, will remove three million tonnes of CO₂ while boosting biodiversity and supporting local communities.
- Microsoft’s long-term commitment signals growing corporate investment in high-quality nature-based carbon removals.
Microsoft has signed a landmark deal to purchase 1.5 million tonnes of verified carbon removal credits from the Panna afforestation project in India, marking its largest carbon removal initiative in the Asia-Pacific region. The project, spanning 20,000 hectares in Madhya Pradesh, is expected to remove three million tonnes of CO₂ over 30 years while delivering economic and environmental benefits to local communities.
The agreement is part of a collaboration between Climate Impact Partners, Terra Natural Capital, and Microsoft. While Terra Natural Capital provides long-term funding, Climate Impact Partners leads project development, ensuring quality and verification under rigorous global carbon standards.
Scaling Carbon Removal and Community Impact
The Panna afforestation project will plant up to 11.6 million native trees on community and farmer-owned land. To date, over 1.2 million trees have already been planted across 100 communities. Beyond carbon sequestration, the initiative promotes economic empowerment, sustainable agriculture, water conservation, and biodiversity restoration.
- Farmers will share in carbon credit revenues and generate income from fruit and medicinal produce.
- Climate-smart agricultural training will enhance crop resilience and long-term yields.
- Water conservation infrastructure including ponds, borewells, and drip irrigation systems will support sustainable tree growth.
- Native tree species will enhance biodiversity, encouraging the return of butterflies and birdlife to previously degraded lands.
Sheri Hickok, CEO of Climate Impact Partners, emphasized the project’s importance in advancing corporate climate action:
“We are incredibly proud that Microsoft, a company that continues to demonstrate bold, climate-responsible leadership, is supporting Panna, a project developed by our expert team. By securing a long-term supply of high-quality carbon credits, this model empowers companies like Microsoft to meet their ambitious climate targets, drive growth in the carbon removal market, and bring benefits to communities most impacted by climate change. Panna exemplifies how companies can help scale large-scale carbon removal infrastructure.”
Microsoft’s Growing Commitment to Carbon Removals
As Microsoft accelerates its path toward carbon negativity, nature-based solutions like afforestation remain a critical component of its climate strategy.
Brian Marrs, Senior Director of Energy Markets at Microsoft, underscored the significance of high-quality nature-based projects:
“At Microsoft, we believe that high-quality, nature-based solutions are vital to addressing climate change. Panna forms an important part of our growing portfolio of carbon removal projects – our first in India and largest in the APAC region. The collaboration with Climate Impact Partners helps to ensure that millions more trees are planted, more carbon is removed from the atmosphere, more jobs are created, and more finance flows back to local communities.”
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A Model for Scalable Carbon Finance
Financing remains a key challenge in the carbon removal market, and Terra Natural Capital’s investment provides long-term capital to scale nature-based solutions.
Erica Vertefeuille, Managing Director at Terra Natural Capital, highlighted the role of financial innovation in unlocking climate impact:
“We are excited to work with Climate Impact Partners to realize large-scale nature-based carbon removal projects like Panna. This transaction reflects the power of collaboration between trusted project developers, corporate demand, and innovative finance to unlock climate impact. We recognize that access to project finance is a critical need for the carbon removal market to scale and are committed to providing long-term capital that will accelerate project development and empower corporates to achieve their climate targets.”
High-Quality Verification and Standards
The Panna afforestation project is verified under Verra’s Afforestation, Reforestation, and Revegetation Methodology (VM0047) and meets the Core Carbon Principles of the Integrity Council for the Voluntary Carbon Market (ICVCM). It also holds an A rating from BeZero and is set to be verified to the Climate, Community, and Biodiversity Standard to ensure additional environmental and social benefits.
The Bottom Line
Microsoft’s 1.5-million-tonne carbon credit purchase reinforces corporate confidence in high-quality, nature-based carbon removals while setting a precedent for large-scale afforestation investments. The Panna project showcases how private capital, corporate commitments, and innovative financing models can drive long-term carbon sequestration and environmental resilience.
