Microsoft has signed another carbon removal deal, this time for forestry projects in North America.
Anew Climate this week announced that it has signed an agreement with Microsoft to deliver more than 970,000 nature-based carbon removal credits generated from Anew’s portfolio of North American improved forest management projects.
The removal credits are derived from forestlands owned by Aurora Sustainable Lands, Acadian Timber Corp., and Baskahegan Company.
“Anew is proud to be part of Microsoft’s sustainability journey,” said Lizzie Aldrich, Anew Climate VP of business development. “Microsoft is a shining example among climate-conscious companies and known for its rigorous due diligence and focus on quality.”
Through its Environmental Products business segment, Anew Climate offers organizations like Microsoft registry-distinguished carbon removal credits generated from tree growth within its diverse forestry portfolio.
“Carbon removal credits provide a financial incentive for traditional institutional landowners and managers to shift to sustainable forestry and land management practices. We are pleased to collaborate with Anew Climate to help increase the carbon stocks of forests across the United States,” said Brian Marrs, senior director of energy and carbon removal at Microsoft.
Anew Climate was formed in February 2022 via the combination of Element Markets, LLC and Bluesource, LLC. It is a portfolio company of TPG Rise, TPG’s global impact investing platform.
As well as signing a large number of renewable energy contracts to power its operations, Microsoft has been regularly investing in carbon capture and removal projects as it seeks to reach not only carbon neutrality but also remove its historical emissions.
Forestation deals are still uncommon sustainability initiatives amongst data center and telecoms companies, with only a few examples in recent years. While trees are major sequesters of carbon, detractors say there's a risk carbon will be released again in the future if reforested areas are not protected properly - in fact, a wildfire did burn down a forest that Microsoft had bought credits in back in 2020.
Microsoft has previously funded an agroforestry project in Kenya, a reforestation project in Panama, and two forestry projects in Brazil.
Orange, Digital Realty, and Gibraltar Telecom have funded other forestry projects. Equinix and CyrusOne are part of an Orchard initiative in Ireland.
