#13 How Microsoft Is Turning Climate Action into Opportunity

Carbon credits are vital for tackling climate change, representing one metric ton of CO2 reduced or removed. They enable businesses to offset unavoidable emissions by supporting projects like reforestation or renewable energy. Compliance markets, like the EU ETS, drive industrial emission cuts (47% since 2005), while voluntary markets help companies like Microsoft achieve carbon negativity. Buyers include corporations, governments, and airlines; sellers are project developers. Standards like Verra ensure credit quality through rigorous verification. Despite criticisms of over-reliance, credits complement decarbonization, with global markets expanding via initiatives like CORSIA and Paris Agreement’s Article 6, fostering innovation and sustainability.