Microsoft introduced Thursday that it’s shopping for over 7 million tons of carbon credit from Chestnut Carbon.
The 25-year deal would allow Chestnut Carbon to reforest 60,000 acres of land throughout Arkansas, Louisiana, and Texas, Axios reported. Just lately, the tech firm has struggled to rein in its carbon emissions as AI has pushed a surge in knowledge middle building and use.
Microsoft reported final 12 months that its emissions rose 29% since 2020 on account of the increase in AI and cloud computing, imperiling its 2030 aim to sequester extra carbon than it produces. In 2023, the corporate reported producing 17.1 million tons of greenhouse fuel emissions earlier than offsets.
Carbon credit are available a variety of flavors. Chestnut Carbon focuses on reforestation, through which the corporate facilitates tree planting after which screens the brand new forests to make sure they develop as deliberate and aren’t minimize down. The corporate presently has eight initiatives within the Southeast U.S., which had been beforehand labored as farms or pastures.
Timber naturally sequester carbon as they develop, although not all forest-related carbon credit are created equal. Credit from initiatives that plant non-native, fast-growing timber are usually seen as decrease high quality and promote for much less since they don’t are inclined to assist as a lot biodiversity, and the timber don’t are inclined to reside as lengthy. Initiatives that assist numerous, native plantings usually promote at a premium because the ecosystems that outcome are typically extra resilient over time.
Even premium carbon credit from afforestation, reforestation, and averted deforestation are a relative deal in contrast with some options. Chestnut Carbon offered credit final 12 months for $34 per ton, whereas direct air seize, which makes use of followers and chemical sorbents to attract CO2 out of the ambiance, prices round $600 to $1,000 per ton right now. Regardless of the fee differential, Microsoft has additionally purchased carbon credit from direct air seize startups.
For all their strengths, nature-based carbon credit aren’t at all times excellent. Verra, which has the biggest nature-based carbon credit score portfolio, was the topic of an extensive investigation in 2023 which reported that the group overstated the local weather good thing about its initiatives. The scandal led to the CEO’s ouster and made the business reassess the requirements it makes use of. Chestnut Carbon, which beforehand used Verra to certify its carbon credit, right now makes use of Gold Commonplace.