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Microsoft has signed a massive deal to purchase over 7 million tons of carbon credits from reforestation startup Chestnut Carbon. The 25-year agreement will enable Chestnut Carbon to replant and maintain an enormous area of land, spanning across 60,000 acres in Arkansas, Louisiana, and Texas.
This significant commitment comes as Microsoft struggles to curb its growing carbon emissions due to the surge in data center construction and use driven by AI adoption. The company’s own reporting reveals a staggering 29% increase in emissions since 2020. This has put its goal of sequestering more carbon than it produces by 2030 under severe pressure.
Chestnut Carbon, on the other hand, focuses exclusively on reforestation projects. By purchasing credits from Chestnut Carbon, Microsoft will not only be reducing its own carbon footprint but also supporting environmentally friendly initiatives that promote sustainable land use practices.
The purchased carbon credits are derived from Chestnut Carbon’s projects, which involve planting and monitoring trees to ensure they grow as planned and aren’t felled for other purposes. The startup currently operates eight distinct projects across the Southeastern United States, transforming previously used farmland or pastures into thriving ecosystems.
It is essential to note that not all forest-related carbon credits are created equal. Higher-quality credits stem from projects that involve planting native species, support biodiversity, and have a longer lifespan. Chestnut Carbon’s methodology aligns with these principles, ensuring the purchased credits can be trusted to genuinely offset Microsoft’s emissions.
In addition to its deal with Chestnut Carbon, Microsoft has also acquired carbon credits from direct air capture startups in the past. Direct air capture involves using fans and chemical sorbents to pull CO2 directly out of the atmosphere. Although this technology is not as environmentally friendly as reforestation projects, it still plays a crucial role in the fight against climate change.
In a recent scandal, nature-based carbon credit provider Verra was found to have overstated the climate benefits of its projects, leading to the CEO’s departure and an industry-wide review of methodologies. Chestnut Carbon’s commitment to transparency and rigorous monitoring ensures that the purchased credits can be relied upon to offset Microsoft’s emissions in good faith.
The massive agreement between these two entities serves as a significant development in the ongoing quest for sustainable business practices. As technology continues to advance at breakneck speed, it is crucial that companies prioritize their environmental footprint and invest in initiatives that drive positive change.
Source: techcrunch.com
