Microsoft and Indigo Ag, a provider of biological solutions and sustainable agriculture, announced a new carbon removal purchase agreement. Under the terms of the deal, Microsoft would receive 40,000 tons of carbon credits from Indigo that were produced as a result of encouraging American farmers to use regenerative agriculture techniques.
Regenerative agriculture strategies include methods to strengthen and repair ecosystems, raise soil fertility and health, lower emissions, improve watershed management, boost biodiversity, and enhance farmers’ livelihoods. These approaches are intended to address the environmental impact of the agricultural industry.
Indigo Ag was established in 2013 and offers digital and nature-based technology to farmers in an effort to increase environmental sustainability and profitability. The business started its carbon program in 2019 to assist farmers in implementing regenerative agriculture techniques that increase soil quality and trap carbon dioxide, such as cover crops, varied crop rotation, less tillage, and better timing of nitrogen applications. In accordance with the program, farmers implement the new practices with Indigo’s agronomic assistance. Indigo also computes the carbon credits using soil samples and on-farm data, verifies the results with a verifier, and submits the results to a carbon registry in order to issue the credits, which can be sold to corporations.
To date, Indigo’s solutions have removed over 340,000 tons of emissions, and saved more than 19 billion gallons of water. The agreement with Microsoft marks Indigo’s largest to-date delivery of carbon credits to a single buyer.
Dean Banks, CEO at Indigo Ag, said:
“Today’s announcement is a major milestone for Indigo’s Carbon program and our increasing range of ag-based sustainability solutions. Microsoft is a leader in corporate climate action, a highly influential player in carbon removals and shares our commitment to support the transition to a more resilient and sustainable agriculture system.”
The announcement adds to Microsoft’s growing portfolio of carbon removal purchases, forming part of the tech giant’s initiative to become carbon negative by 2030, which span an increasing range of solutions and technologies including, direct air capture (DAC), ocean-based carbon removal, and biochar-based projects, and include several large-scale nature-based carbon removal agreements. Microsoft announced the largest-ever carbon removal transaction earlier this week, agreeing to purchase 8 million tons of carbon removal credits from BTG Pactual Timberland Investment Group (TIG), generated through reforestation and forest restoration projects.
Brian Marrs, Senior Director of Energy and Carbon Removal at Microsoft said:
“Soil organic carbon restoration is vital to the future of food systems, economies and climate change mitigation. We are pleased to collaborate with Indigo Ag to advance both the adoption of regenerative agriculture practices and the soil organic carbon scientific evidence base.”