Tech giants like Google and Microsoft are boosting demand for quality carbon removals through ARR (Afforestation, Reforestation, and Revegetation) projects. These projects restore degraded land, store carbon, and support biodiversity.
ARR projects are becoming the new gold rush in the voluntary carbon market as the market shifts to durable, transparent credits.
Greening the Planet: What Are ARR Projects?
ARR projects help remove carbon dioxide by planting trees and vegetation in areas lacking green cover. They aim to restore ecosystems and increase biomass, which stores carbon.
ARR differs from REDD+, which prevents deforestation. ARR focuses on creating new green areas, especially where natural forests can’t grow back.
Three Key Ways to Restore Green Cover
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Afforestation: Planting trees where forests didn’t naturally exist, like grasslands.
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Reforestation: Rebuilding forests lost to farming, logging, or land-use changes.
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Revegetation: Regrowing woody plants and shrubs on damaged lands, not just tall trees.
All three methods aim to pull more carbon from the air and store it in the soil and plants.
Why Do They Matter Now?
Forests capture about 7.6 billion metric tonnes of CO₂ each year—more than the total emissions of the U.S. Yet, deforestation accounts for around 11% of global emissions, and this trend is worsening. ARR projects can reverse this by adding carbon-storing vegetation where it was absent.
These projects benefit the climate and support local wildlife and soil health. When done properly, they also provide long-term gains for nearby communities. Using native species and involving locals can improve crops, boost incomes, and build resilient communities.
Unlocking ARR Carbon Credits
ARR carbon credits represent the carbon stored by growing new trees and plants. Project developers estimate how much carbon the land would absorb without the project. They then compare this to actual growth over time, often using biomass data to calculate total CO₂ stored.
Since ARR targets degraded land, the natural carbon removal baseline is low. This means new growth from ARR activities provides a real benefit. These projects usually last for decades unless disrupted by wildfires or pests.
According to Sylvera’s State of Carbon Credits 2024 report, buyers typically pay about $5 more for higher-rated ARR projects.



This shows buyers are willing to invest more for credits with lower risks, like better permanence or additionality. The higher prices also reflect the cost of developing better-quality projects. However, prices vary widely. Some buyers may pay extra for biodiversity benefits, while others could overpay for similar credits.
Microsoft and Google Boost Demand for High-Quality ARR Credits
ARR carbon credits are gaining traction, especially those linked to reforestation and biodiversity. The DGB Group reports that tech companies like Microsoft and Google back premium ARR projects, sometimes paying up to $70 per tonne of CO₂. These higher costs reflect buyers’ expectations for clear environmental benefits, long-term durability, and high transparency.
Some key projects in this sector are:
Brazil’s Mombak
These high prices are not the norm. Most projects sell for less, but developers like Brazil’s Mombak are setting new standards. By planting up to 50 native tree species in remote areas, they boost biodiversity but also raise costs compared to simpler tree farms.
Panamanian Project by Ponterra
Microsoft recently bought credits from Ponterra’s Panamanian project, reportedly paying close to $70 per tonne. Buyers like Microsoft and Google now seek detailed cost breakdowns and future pricing forecasts to ensure high-quality projects that become more affordable over time.
The Symbiosis Coalition
The Symbiosis coalition, including Google, Meta, Microsoft, Salesforce, and McKinsey, pays around $50–$55 per credit as it aims for 20 million tonnes of carbon removals by 2030.
Newer credits are being validated under stricter standards like Verra’s VM0047. Yet the ARR market remains scattered, with no fixed price guide.
So currently, 12 ARR projects are under review, with first selections expected in late 2025 or early 2026.



The ARR Carbon Credit Market Shifts
The same Sylvera report reveals significant changes in the voluntary carbon market (VCM) over the past year. Verra still leads with 63% of credit retirements, but its share of new issuances has dropped to 36% as many REDD+ projects delay credits.
Gold Standard and other registries like Puro and Isometric are gaining traction, particularly in durable carbon removal (CDR).
The market is shifting toward removal-based credits, but it’s unclear which methods or registries will dominate, especially for nature-based solutions like ARR.



Supply Drops But Demand Holds
Prices Split by Project Type
ARR credit prices vary widely. Projects with diverse native trees can reach $60 per ton, but these are rare and often tied up in long-term deals.
Conversely, projects planting fast-growing, non-native trees like eucalyptus are cheaper, selling for under $5 per ton.
Experts warn that faster credits may come with environmental trade-offs. Eucalyptus, for instance, drains water quickly and may harm local ecosystems.
Challenges in ARR Credit Issuance
ARR (Afforestation, Reforestation, and Revegetation) credit issuances lag due to several challenges.
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Slow Tree Growth: Newly planted trees take years to absorb enough carbon, limiting early credit generation.
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High Upfront Costs: Unlike projects managing existing forests, ARR projects need major investments and long commitments.
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Verification Delays: Complex third-party monitoring and registry approvals slow credit issuance.
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Landowner Hesitation: Farmers resist switching from crops to forests due to uncertain financial returns.
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Ecological Trade-Offs: Native trees grow slowly but have higher value; faster-growing non-native species issue credits quicker but risk harming ecosystems.
ARR: A Long-Term Investment
Developers say ARR is more than planting trees; it’s a major land-use shift. U.S.-based GreenTrees partners with landowners to convert old crop fields into forests. This transition demands time, money, and a long-term vision.
Chestnut Carbon, a U.S. firm launched in 2022, is growing slowly to ensure quality. In 2025, it signed a deal with Microsoft for more than 7MT of carbon credits over multiple phases. Credit delivery will begin in 2027. The collaboration enables Chestnut to expand its ARR portfolio to 500,000 acres by 2030.
Interest in ARR and durable carbon removals is growing. Scaling these credits takes time. Demand is increasing for clear, eco-friendly, and long-lasting ARR credits. This trend is strong among big tech buyers. The market is moving toward higher-quality credits, which will take significant time.