Microsoft Buys Record 2.85 Million Soil Carbon Credits in Push to Go Carbon Negative
Microsoft has agreed to purchase 2.85 million soil carbon credits from Indigo Carbon, marking the largest single deal of its kind in the United States. The 12-year partnership forms part of the company’s wider effort to become “carbon negative” by 2030, even as its energy consumption and emissions surge due to artificial intelligence expansion.
While financial details were not disclosed, a source familiar with the agreement said the credits were priced between $60 and $80 per ton. This places the total value of the deal at between $171 million and $228 million. Microsoft remains the world’s biggest buyer of carbon removal credits, deepening its investment in sustainable land management and verified climate mitigation projects.
Regenerative Agriculture at the Core
The credits are linked to regenerative agriculture — a method that includes reducing soil tillage, planting cover crops, and allowing livestock to graze in ways that improve soil health. These techniques enhance the soil’s ability to store carbon and retain water, helping mitigate the effects of climate change.
“This brings the importance of soil carbon removal into corporate climate action,” said Meredith Reisfield, Indigo’s senior director for policy, partnerships and impact. She added that the agreement “solidifies Indigo’s reputation and leadership in high-integrity carbon credits.”
Farmers participating in the programme will receive around 75% of the weighted average cost of a credit from each issuance or crop year, creating a long-term financial incentive to maintain sustainable farming practices.
Phillip Goodman, Microsoft’s director of carbon removal, said the company was “excited by Indigo’s approach to regenerative agriculture that delivers measurable results through verified credits and payments to growers.”
Growing Demand for High-Quality Carbon Credits
Data from market research firm Sylvera indicates rising demand for soil carbon credits. Last year, Microsoft signed a separate deal with Agoro Carbon to purchase 2.6 million credits, a record now surpassed by the Indigo agreement.
Indigo identifies opportunities for emission reduction and removal, collaborates with farmers to develop projects, and facilitates the sale of verified credits. The company’s model aims to ensure environmental integrity and traceability across each carbon project.
Balancing Emission Reductions and Carbon Removal
In the voluntary carbon market, companies can offset their emissions by purchasing credits representing one ton of carbon dioxide removed from the atmosphere. Being carbon negative means Microsoft intends to remove more carbon than it emits across its operations globally.
Scientists widely agree that carbon removal will be crucial to limiting global temperature rise, particularly as industries such as energy and manufacturing continue to rely on fossil fuels. However, some experts remain sceptical about the permanence and measurement of soil-based removal credits, arguing that such projects must complement — not replace — direct emission reductions.
Despite the debate, Microsoft’s latest deal signals a growing confidence among major corporations in the potential of regenerative agriculture to deliver credible, large-scale climate benefits.
with inputs from Reuters
