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In a landmark environmental initiative, Microsoft has secured a substantial agreement to restore sections of Brazil’s Amazon and Atlantic forests, exchanging the restoration work for carbon credits valued at approximately £200 million. The deal represents a significant step by the tech giant to address its growing carbon footprint, driven largely by the surge in energy consumption from artificial intelligence operations.
The arrangement, unveiled by the £3.2 trillion US technology corporation, involves purchasing 3.5 million carbon credits over a 25-year period from Brazilian start-up Re.green. The conservation company specialises in acquiring farming and cattle lands, transforming them through the cultivation of native tree species, generating revenue through both carbon credits and sustainable timber sales.
Microsoft’s carbon emissions reached a concerning 17 million tonnes of CO₂ and other greenhouse gases in 2023, marking a 40% rise from its 12 million tonnes in 2020. This increase coincides with the exponential growth in data centre operations required to support the burgeoning AI sector, a challenge shared by fellow tech giants Google and Amazon.
Re.green’s Chief Executive, Thiago Picolo, identified US-based technology companies as the primary purchasers of nature-based carbon credits, particularly through future decade agreements. The deal highlights the growing trend of tech companies seeking to balance their environmental impact while maintaining aggressive AI development strategies.
The carbon credit market has faced scrutiny over verification processes and effectiveness. However, Microsoft’s commitment to paying premium rates – reportedly above £50 per tonne for high-quality nature-based removals – sets a new industry standard. This latest agreement follows Microsoft’s previous arrangement with Re.green for 3 million credits and an 8 million credit purchase from BTG Pactual Timberland Investment Group.
Microsoft’s ambitious goal to achieve “carbon negative” status by 2030 demonstrates the increasing pressure on technology companies to address their environmental impact while managing the explosive growth of AI technologies. The strategy combines emissions reduction with substantial investments in carbon removal credits, positioning Microsoft as a leader in corporate environmental responsibility.
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