In a major step toward scaling soil-based carbon removal, Microsoft has purchased 60,000 soil carbon credits from Indigo Ag. The credits come from Indigo’s fourth and largest carbon crop, officially issued in April by the Climate Action Reserve (CAR).
This latest transaction follows Microsoft’s initial 40,000-credit purchase last June, strengthening its long-term commitment to high-integrity carbon removal.
Dean Banks, CEO, Indigo Ag, said,
“When Microsoft, recognized as the major driver behind the carbon removals market, invests in Indigo’s carbon credits, it affirms their confidence in our science, team, and technology. Our microbial and sustainability portfolio spans 20 million acres across 15 countries, and this deal underscores the trust in farmers’ hard work to create a healthy and resilient agri-food system.”
Indigo Ag: Backing Regenerative Farming with Carbon Revenue
Indigo Ag’s carbon program continues to grow at scale. The press release says, so far, it has delivered nearly one million tonnes of verified carbon impact and helped prevent over 64 billion gallons of surface water runoff across the U.S. agricultural landscape.
The company’s newest issuance is funneling tens of millions in private capital toward regenerative farmers. Per Indigo’s model, 75% of carbon credit revenues are paid directly to growers who implement regenerative practices, such as cover cropping and reduced tillage.
This not only incentivizes sustainable agriculture but ensures climate impact is both measurable and long-lasting.
Verified, Permanent, and Additional Carbon Removal
The soil carbon credits purchased by Microsoft are issued under the Soil Enrichment Protocol developed by CAR, one of the most respected registries in the market. Each credit is:
- Registry-Issued: Third-party verified under strict methodologies by CAR or Verra
- Real: Quantified using robust accounting for emissions sources, sinks, uncertainty, and leakage
- Additional: Tied to practices that go beyond conventional farming—no “business-as-usual” allowed
- Permanent: Assessed over a 100-year horizon and protected with insurance buffers
- Uniquely Claimed: Each credit is tracked from creation to retirement with no double-counting
- Co-Beneficial: Delivers added environmental and community benefits
These standards are backed by peer-reviewed research and Indigo’s in-house measurement, reporting, and verification (MRV) tools, which follow IPCC best practices. The MRV ensures long-term monitoring and scientific accuracy.
Furthermore, “Carbon by Indigo” has now become one of the few large-scale ag soil credit programs to demonstrate scalability, scientific integrity, and financial returns for farmers. Other recent buyers include HubSpot, which secured credits via climate platform Watershed.
Microsoft is Leading the Way in Scalable, Soil-Based Removals
Microsoft’s new purchase shows growing confidence in soil carbon as a credible removal pathway. With increasing scrutiny on carbon markets, deals like this demonstrate how agricultural credits, when rooted in rigorous science, can provide reliable, durable carbon storage.
Brian Marrs, Senior Director of Energy and Carbon Removal, Microsoft, noted,
“Indigo’s work to create resilient farms and secure watersheds across the U.S. delivers measurable climate benefits as well as improved soil and water health and new economic development opportunities in rural communities. We conduct extensive due diligence when choosing projects for our portfolio, and are pleased to support this project as part of Microsoft’s broader portfolio of high-quality carbon removal solutions. The collaboration aims to protect the economic security of our agri-food system with a measurable and scalable approach to nature-based carbon removal.”
Progressing Toward Net-Zero Goal
Microsoft aims to be carbon negative by 2030 and to cut all its past carbon emissions by 2050. To achieve this, it also needs reliable ways to remove carbon from the atmosphere. This is why carbon removal plays a key role in their sustainability map.
As seen before and now, the tech giant is heavily investing in nature-based solutions like biochar, soil carbon credits, ARR, and ERW methods to manage its emissions.
By investing in verified, high-quality removals, Microsoft is building a diversified portfolio that includes nature-based solutions alongside engineered technologies, key to meeting its 2030 carbon negative goal.
