Microsoft has signed one of the largest-ever carbon removal agreements through forests. The tech giant will purchase 4.8 million tons of high-quality carbon removal credits over 10 years from Anew Climate and Aurora Sustainable Lands. The credits come from improved forest management (IFM) projects in the U.S., helping Microsoft get closer to its goal of becoming carbon negative by 2030.
This new deal highlights Microsoft’s leadership in corporate climate action and growing interest in nature-based carbon removal. As climate commitments rise, so does demand for trusted, measurable carbon removal.
Betting on Trees: Microsoft’s Commitment to Forest Carbon Removal
Forest carbon removal is a key nature-based solution for fighting climate change. It mainly involves better forest management, afforestation, and reforestation. The Intergovernmental Panel on Climate Change (IPCC) says nature-based solutions, like restoring forests, could cut emissions by 30%. This is essential to keep global warming below 1.5°C.
A 2024 report by the Forest Trends Initiative found that around 46% of voluntary carbon market transactions involved forest and land-use credits. McKinsey estimates that by 2030, forest-based carbon removal could reduce CO₂ by up to 7 gigatons each year if fully developed. This shows its crucial role in corporate climate strategies.
The agreement between Microsoft and Anew Climate spans a full decade. This long-term deal supports Anew and Aurora Sustainable Lands. It gives them the funds to manage big forest areas for carbon storage. The deal covers 4.8 million metric tons of carbon dioxide to be removed and stored from the atmosphere.
The carbon credits will come from improved forest management (IFM) projects. These efforts involve changing how forests are maintained to store more carbon. This could mean extending harvest cycles, thinning trees carefully, or protecting forests from being cleared. IFM is a nature-based solution backed by science and approved by trusted carbon standards.
Anew Climate—formerly known as Bluesource—has worked in environmental markets for more than two decades. It has helped develop over 400 IFM projects across 5 million acres in North America. Aurora Sustainable Lands manages vast forest areas in the U.S. It focuses on keeping the land environmentally safe and financially viable.
Microsoft’s Path to Carbon Negative
Microsoft’s deal with Anew is not just large—it’s also part of a broader strategy. In 2020, the company set a bold goal: to be carbon negative by 2030. That means it wants to remove more carbon from the air than it emits each year. Even more, by 2050, Microsoft plans to eliminate all the carbon it has ever released. This includes carbon from its direct operations and electricity use since its start in 1975.
To meet these goals, Microsoft has invested in a wide mix of carbon removal methods. These include:
- direct air capture, which removes carbon from the air,
- biochar,
- ocean-based carbon removal, and
- nature-based solutions like IFM.
It evaluates all projects using strict standards to ensure they are high-quality and trustworthy.
With this forest carbon deal, Microsoft continues to show that nature has a key role to play. Forests are one of the most powerful tools to fight climate change, and managing them well can create jobs, protect biodiversity, and support local communities. Plus, they remove carbon from the atmosphere.
Green is Gold: Investors Eye Forest Carbon Boom
As more companies aim to hit net zero, nature-based carbon credits are becoming more popular. These credits are different from “avoided emissions” (which prevent emissions from happening) because they actually remove carbon that’s already in the air. That’s a crucial difference for meeting long-term climate goals.
Improved forest management projects are especially attractive because they’re well-understood, scalable, and provide co-benefits beyond carbon. These include cleaner air and water, healthier habitats, and stronger local economies.
This kind of deal also sends a signal to other companies that carbon removal is essential in climate goals. While many firms focus on reducing emissions, the science shows that removal is also necessary to reach net zero and keep global warming below 1.5°C.
The volume of credits—4.8 million tons—is also meaningful. That’s roughly equal to removing the annual emissions of more than 1 million cars. It shows that corporate buyers are now looking for large-scale, trusted removal options, not just small pilot projects.
Microsoft has been the top buyer of carbon removal in 2024, alongside other tech giants like Google.
Corporate Demand for Nature-Based Solutions: Why Big Business Is Going Green
Microsoft is not the only company making big moves in the carbon credit space. Amazon, JPMorgan Chase, and Salesforce have also invested in nature-based climate solutions. In fact, demand for high-integrity carbon credits is growing so fast that supply struggles to keep up.
In an analysis by McKinsey & Company, demand for carbon credits could rise 15-fold by 2030 and 100-fold by 2050. To meet that demand, both engineered and nature-based removal options will need to grow rapidly.
Improved forest management, afforestation (planting new forests), and conservation are likely to remain key parts of the solution. McKinsey & Company projects that nature-based solutions could make up to 85% of the market in 2030.
However, investors and buyers want more transparency, monitoring, and proof that the credits deliver real, long-term impact. That’s why deals like this one matter. Microsoft, Anew Climate, and Aurora are showing what it looks like to build scale and credibility at the same time.
Setting the Bar on Nature-Based Carbon Removal
Microsoft’s landmark deal with Anew Climate and Aurora Sustainable Lands sets a new bar for forest-based carbon removal. It combines scale, duration, and integrity—offering a model for how big companies can support natural climate solutions while hitting their own targets.
As the voluntary carbon market grows, long-term, high-quality deals like this could help build trust and unlock billions in climate finance. Forests alone can’t solve the climate crisis, but with the right support, they can be a powerful part of the solution.
