Microsoft Signs Record-Breaking 7 Million-Ton Carbon Removal Deal with Chestnut Carbon

Microsoft has announced a 25-year agreement with Chestnut Carbon, a startup specializing in nature-based carbon removal, marking the largest-ever voluntary corporate investment in conservation forestry in the U.S. The deal will provide Microsoft with 7 million tons of carbon removal credits generated from forest restoration projects in the Southern United States.

Chestnut Carbon’s projects will restore approximately 60,000 acres of marginal crop and pasture lands in Arkansas, Texas, and Louisiana, planting over 35 million native hardwood and softwood trees. This initiative will not only sequester carbon but also enhance biodiversity, improve air and water quality, and provide economic and community benefits.

Key Highlights of the Deal:

• Carbon Removal Credits: Generated through afforestation, reforestation, and revegetation (ARR) projects.
• Environmental Impact: Improvements to wildlife habitats, air and water quality, and land use diversification.
• Scalability: The agreement allows Chestnut to expand its ARR portfolio to 500,000 acres by 2030, targeting 100 million tons of CO2 removal over a 50-year period.

Ben Dell, CEO of Chestnut Carbon, remarked:

"Microsoft’s continued investment reinforces the scalability and cost-effectiveness of nature-based afforestation solutions. This partnership accelerates the delivery of high-quality carbon removal credits for the global market."

Microsoft's Broader Sustainability Vision

This agreement builds on Microsoft’s commitment to become carbon negative by 2030. It complements prior deals, including:

• 3 million tons of credits from Chestnut in a 15-year deal signed in December 2024.
• A 3.5 million-ton deal with Brazil-based re.green announced earlier this month.
• Investments in technologies like ocean-based carbon removal, biochar projects, and direct air capture (DAC).

Brian Marrs, Senior Director of Energy & Carbon Removal at Microsoft, said:

“This agreement with Chestnut Carbon is another positive step towards Microsoft’s goal to become carbon negative by 2030. Scaling forest restoration within the U.S. diversifies the ecological impact of our global carbon removal portfolio while attracting sophisticated private capital to advance sustainability efforts."