Microsoft Reportedly Pauses New Carbon Removal Buying After Contracting 45 Million Tons in 2025

Microsoft has reportedly told some carbon removal developers that it is pausing new carbon removal purchases, according to Bloomberg and Heatmap, both citing people familiar with the matter. Bloomberg reported that Microsoft staff contacted some project developers in recent days and, in at least one case, said the decision was linked to financial considerations.

Microsoft has not explicitly confirmed that a full pause is in place. In a statement cited by ESG Today, the company said it “continually review[s] and assess[es]” its carbon removal portfolio and market conditions to find the right balance on its path to becoming carbon negative. That wording leaves the situation short of an official blanket suspension announcement, so the most accurate framing is that a pause in new buying has been reported, not formally declared in full detail by Microsoft itself.

 

Why this matters so much for the market

 

The reason this reported pause is attracting so much attention is Microsoft’s outsized role in carbon removal demand. Heatmap reported that Microsoft made more than 90% of all carbon removal purchases last year, while CDR.fyi’s market updates show Microsoft dominated durable carbon removal buying through 2025, including very large quarterly volumes.

That concentration means any slowdown from Microsoft could affect project pipelines, supplier confidence, and financing expectations across the wider carbon removal market. In practical terms, Microsoft has not been just another buyer. It has been the main source of demand helping many developers move from concept toward commercial scale. This market significance is an inference based on the scale of Microsoft’s purchases relative to the rest of the sector.

 

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The reported pause comes after a record buying year

 

The reported slowdown is especially striking because Microsoft’s buying activity had remained exceptionally strong. ESG Today reported that Microsoft signed agreements to remove a record 45 million metric tons of CO2 in 2025, roughly double its 2024 volume and around nine times its 2023 level. The company also continued announcing new deals into 2026, including major multi-year agreements in recent months.

Microsoft’s own public carbon removal page is still live as of today and says it is accepting proposals that meet its prerequisites and criteria on a first-come, first-served basis. That does not by itself disprove the reports, since internal buying decisions can shift faster than public website language, but it does show that Microsoft has not publicly shut down its procurement channel in a clear and final way.

 

Existing contracts still matter even if new buying slows

 

Even if Microsoft has paused new purchases for now, that does not mean its role in the sector ends immediately. ESG Today noted that Microsoft’s existing multi-year agreements are still expected to channel billions of dollars into carbon removal projects over the coming years. That distinction is important because many suppliers depend not only on new offtake announcements, but also on the delivery and financing credibility created by contracts already in place.

So the near-term effect may be less about current projects collapsing overnight and more about future deal flow becoming less predictable. The most exposed part of the market would likely be developers counting on Microsoft as the next large buyer rather than those already holding signed long-term agreements. This is an inference based on the difference between existing contracts and future procurement.

 

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What this signals

 

The reported pause highlights a structural weakness in carbon removal today: demand has been too dependent on one corporate buyer. If Microsoft is stepping back, even temporarily, it becomes a test of whether the market can broaden to more purchasers rather than relying on one company to set standards, provide liquidity, and fund early scale-up.

It also does not necessarily mean Microsoft is abandoning its carbon negative 2030 goal. The company still publicly maintains that target and its historical emissions removal ambition for 2050. But the reports do suggest that procurement pace, portfolio mix, or financial discipline may now be under closer review than the market had assumed. That final point is an inference based on the reported pause and Microsoft’s public climate commitments.