Microsoft has signed a 25-year carbon removal agreement with Re.green, a Brazilian reforestation startup.
Under the terms of the agreement, Microsoft will purchase 3.5 million carbon credits during the specified period.
The announcement, first reported by the FT, said that while no deal value was disclosed, recent market analysis suggests it could be worth around $200 million.
Re.green is an ecological restoration firm that restores degraded lands to their original biodiverse ecosystems with native species. According to the company, this process permanently sequesters carbon from the atmosphere.
The company finances its efforts by selling carbon credits and producing certified native hardwood, which they say enables large-scale restoration through the sustainable management of the entire production chain.
This is the second deal the two companies have struck in the last 12 months. In May, they signed a carbon removal agreement to deliver approximately three million tons of carbon removal credits over 15 years.
The deal will fund the restoration of more than 16,000 hectares of degraded pastureland across Brazil (over half of which is already acquired with restoration activities underway), including in the States of Maranhão and Bahia, encompassing the planting of at least 10.7 million native seedlings.
Microsoft signed numerous carbon removal deals during 2024 to bolster its green credentials. The tech firm acquired carbon credits from companies offering various carbon sequestration and removal technologies, including direct air capture, biomass, waste concrete, and enhanced rock weathering.
However, 2024 also saw Microsoft accused of greenwashing due to its close links with fossil fuel companies.
In a filing with the US Securities and Exchange Commission from the non-profit As You Sow, Microsoft was accused of hypocrisy for styling itself as a “first mover” on climate change while targeting fossil fuels as the most significant growth opportunity for artificial intelligence (AI), machine learning and cloud computing services.
