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 heart 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 objective to sequester extra carbon than it produces. In 2023, the corporate reported producing 17.1 million tons of greenhouse gasoline emissions earlier than offsets.

Carbon credit are available in a spread of flavors. Chestnut Carbon focuses on reforestation, during which the corporate facilitates tree planting after which displays the brand new forests to make sure they develop as deliberate and aren’t reduce down. The corporate presently has eight tasks within the Southeast U.S., which have 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 tasks 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 help as a lot biodiversity, and the timber don’t are inclined to stay as lengthy. Initiatives that help numerous, native plantings sometimes promote at a premium for the reason that ecosystems that end result are usually extra resilient over time.

Even premium carbon credit from afforestation, reforestation, and prevented deforestation are a relative deal in contrast with some options. Chestnut Carbon bought 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 environment, prices round $600 to $1,000 per ton at present. Regardless of the price differential, Microsoft has additionally purchased carbon credit from direct air capture startups.

For all their strengths, nature-based carbon credit aren’t all the time 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 advantage of its tasks. 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, at present makes use of Gold Customary.