Microsoft Leads in Carbon Dioxide Removal (CDR) Credit Purchases, Acquiring 6.6M Tonnes, Surpassing All Other Buyers Combined

Microsoft is committed to being carbon-negative by 2030. The tech giant has taken the lead in Carbon Dioxide Removal (CDR) credit purchases, setting a remarkable precedent in corporate responsibility. An analysis by Stocklytics.com reveals that Microsoft has acquired a staggering 6.6 million tonnes of CDR credits, surpassing the cumulative purchases of all other buyers combined.

Stocklytics financial analyst Edith Reads commented on the findings:

Microsoft’s substantial investment underscores its unwavering commitment to combatting climate change and achieving carbon neutrality. By actively engaging in the market for CDR credits, the company is taking proactive steps to offset its carbon footprint and contribute to global efforts in carbon reduction.

Stocklytics financial analyst Edith Reads

Understanding Carbon Dioxide Removal (CDR) Credits

CDR credits represent a vital component of carbon offsetting strategies, allowing companies to invest in projects that remove carbon dioxide from the atmosphere. These projects range from reforestation initiatives to innovative carbon capture technologies, all aimed at mitigating the impacts of greenhouse gas emissions.

Alongside Microsoft’s remarkable acquisition of 6.6 million tonnes of Carbon Dioxide Removal (CDR) credits, other prominent buyers have also made substantial investments in offsetting carbon emissions. Denmark, for instance, has secured 1.1 million tonnes of CDR credits, while Frontier Buyers follows with 0.5 million tonnes. On the other hand Airbus and Amazon each acquired 0.4 million tonnes and 0.25 million tonnes of CDR credits, respectively. 

Microsoft hopes to cut annual GHG emissions by more than half and remove all remaining annual emissions. By 2050, the company also commits to removing the equivalent of all cumulative GHGs emitted since it was founded. At the beginning of 2021, Microsoft announced its first 1.3 million metric tons of CDR portfolio. In March 2022, Microsoft announced an additional 1.5 million metric tons added to its CDR portfolio. 

Microsoft’s Investment in CDR Credits

Microsoft is leading in carbon removal, investing in many large-scale projects to be carbon-negative by 2030 and remove the equivalent of all its cumulative greenhouse gas emissions by 2050. 

Microsoft made its first long-term purchase in 2022 in an agreement with Climeworks to remove 10,000 tons of CO2. Climeworks launched the world’s first commercial DAC facility in Iceland, which uses giant fans to capture CO2 and bury it underground. 

At the beginning of 2023, Microsoft agreed to buy carbon removal credits from CarbonCapture, another California-based DAC startup. The amount of the agreement wasn’t disclosed, though.

In September 2023, Microsoft signed a long-term contract to purchase up to 315,000 metric tons of CO2 removal over a multi-year period from Heirloom, a Direct Air Capture company that harnesses the natural properties of limestone to remove CO2 from the atmosphere.

Brian Marrs, Microsoft’s Senior Director for Energy and Carbon Removal, remarked on this, saying, “We’re investing in carbon removal because we think it’s an essential market to emerge, not just to meet our goals but for the world to meet its goals.”

Microsoft’s Initiative as a Catalyst for Change

The news of Microsoft’s significant investment in CDR credits is crucial in the global fight against climate change. With mounting pressure to reduce emissions and transition to renewable energy sources, corporate leadership in sustainability has never been more essential.

Recently, Microsoft signed a deal with Swedish energy company Stockholm Exergi to remove 3.3 million metric tons of carbon dioxide permanently. According to Stockholm Exergi, this agreement is the world’s largest carbon removal deal to date. 

Stockholm Exerg expects delivery of the carbon removal certificates to Microsoft to commence in 2028 and will continue for a decade.

Microsoft’s proactive approach is a beacon of hope and inspiration as the world grapples with the urgent need to curb carbon emissions. By leading the charge in CDR credit purchases, the tech giant is not only mitigating its environmental impact but also driving innovation and progress in the quest for a greener future.