Microsoft to Buy 1.5M Tonnes of Carbon Credits in Indian Afforestation Project

Microsoft has signed an agreement with UK-based Climate Impact Partners to buy 1.5 million tonnes of certified carbon removal credits from a project based in India. The agreement supports the Panna afforestation project in the Madhya Pradesh state, which will see 11.6 million trees planted on 20,000 hectares of agricultural land and common land within a 30-year period. The project is Microsoft's biggest carbon removal project in the Asia-Pacific and its first in India.

Mass Afforestation and Environmental Impacts:-
The Panna afforestation project is being built by Climate Impact Partners in partnership with Terra Natural Capital. The project has been through rigorous due diligence, pilot operations, and third-party assessments over the last three years to guarantee that it is of international quality. The project has been planned to deliver several benefits, such as carbon removal, restoration of biodiversity, and water conservation.

By the development of native tree plantations, the project will advance the soil's quality, sequester carbon, and support the reclamation of degraded sites. Water-conserving techniques in the form of ponds, borewells, and drip irrigation are also embraced in the endeavor to improve local agriculture.

Economic and Social Benefits to Host Communities:-
The afforestation initiative is to economically empower farmers and landowners through the development of carbon credits sold in the international market. Already, 1.2 million trees have been planted within 100 villages and additional expansion is underway. Farmers will be empowered by the provision of sustainable agriculture training to improve their livelihood as well as environmental protection.

The initiative is in tandem with India's dreams of expanding green cover and addressing climate change. Such massive afforestation drives contribute significantly towards managing carbon emissions and generating socio-economic dividends for the rural population.

Validation and Carbon Credit Market Growth The project will be verified to Verra's new Afforestation, Reforestation, and Revegetation Methodology (VM0047) and rated against Integrity Council for the Voluntary Carbon Market's Core Carbon Principles. It is A-rated by carbon credit rating agency BeZero, reflecting its position within the carbon offsetting market.

Scaling such projects requires long-term capital, and this deal is an indication of the increasing demand from international companies for carbon removal projects. As companies such as Microsoft are being increasingly pushed by regulators and investors, they are investing in huge volumes of carbon removal to achieve their decarbonization goals.

This partnership is part of a wider shift in businesses seeking genuine carbon offsetting options as a means of achieving net-zero. With more pressure being placed on businesses to cut their own emissions, investing in nature-based solutions like afforestation is the priority.

Conclusion:-

Microsoft's investment in the Panna afforestation project is a demonstration of commitment to environmental sustainability and business climate action. The project not only assists the company in reducing its carbon footprint but also contributes to biodiversity, water conservation, and local economic development in India. With increasing demand for verified carbon credits, such projects are likely to become a key part of global decarbonization.

Source: Climate Impact Partners Credits: Climate Impact Partners, Terra Natural Capital