Microsoft Buys 700K Carbon Credits From Forestry Project

In a first in the race to meet its bold sustainability ambitions, Microsoft has closed a long-term deal to buy up to 700,000 nature-based carbon removal credits through 2035 from Climate Asset Management (CAM). The credits are to be sourced from a climate-smart forestry initiative in Washington State's Olympic Peninsula, which is renowned for high biodiversity and vast forest ecosystems. The agreement, organized and fashioned by Ecotrust Forest Management (EFM), CAM's operating partner for its Natural Capital Fund I (NCF), represents a huge milestone in corporates' adoption of long-term carbon purchasing strategies.

The deal supports Microsoft's overall climate goal to become carbon negative by 2030 — a target that is only achieved by taking more carbon out of the atmosphere than the company emits throughout its operations and value chain. Through investing in technology-driven, high-quality nature-based solutions, Microsoft continues to demonstrate leadership in the voluntary carbon market with the expectation that others will follow with comparable impactful initiatives.

The forestry project at the heart of this deal is undergoing a transformation to climate-smart forest management, a model gaining widespread recognition for its potential to deliver meaningful and measurable carbon removals at scale. The project is expected to generate over one million tonnes of carbon removals over the next decade, positioning it as one of the more significant nature-based carbon removal initiatives in North America. Along with its carbon benefits, the project comes with a suite of co-benefits — including increased biodiversity, improved forest resilience, and more robust partnerships with local and tribal communities.

James Bullen, CAM's Head of Asset Management, emphasized the significance of the deal in providing long-term financial and environmental value. "We are delighted that our climate-resilient forestry asset in the Olympic Peninsula has now secured another long-term offtake agreement, substantially de-risking the carbon component of our project," he added. The agreement not only guarantees stable revenue from carbon credits but also confirms the long-term sustainability of combining vintage forestry revenues with new carbon markets.

One of the driving forces behind the implementation of this arrangement is EFM, a world leader in sustainable forest management and carbon project development. EFM has promoted an Improved Forest Management (IFM) approach that emphasizes extending the rotations of trees, lessening logging's effects, and selective harvesting strategies. Collectively, these practices increase long-term carbon sequestration as well as improve ecosystem health — such as in water retention, soil, and wildlife habitats.

"Such management strategies contribute towards enhancing forest health — water and soil quality, as well as biodiversity — and at the same time delivering community benefits, all very much in line with NCF's impact goals," Bullen added. The forestry scheme is encapsulated by the spirit of sustainable development, demonstrating how environmental restoration and economic gain can be combined when projects are planned ahead and respected.

Microsoft's contract encompasses almost all the carbon credits anticipated to be produced during the entire lifespan of the project, highlighting the increasing trend of long-term offtake contracts in the voluntary carbon market. Such agreements not only guarantee price stability and project creditworthiness but also create investor confidence — enabling scalable private-sector investment in nature-based climate solutions. By obtaining future credit streams in advance, these agreements de-risk projects for both developers and investors, speeding up the development and deployment of climate-resilient forestry projects.

This deal creates a new precedent for the extent to which long-term commitments can spur investment into the natural capital industry. For Microsoft, this acquisition is a foundational pillar of its carbon-negative future. For CAM and EFM, it rewards their convergent approach of combining conservation forest management with carbon finance to drive sustainable landscape change.

As the climate emergency intensifies and corporate responsibility for carbon signatures increases, projects such as this demonstrate the critical potential for nature-based solutions. They represent a very uncommon combination of environmental soundness, economic stability, and social value — looking to a future where natural systems are not only conserved but rejuvenated to benefit people as well as the planet.