UK-based Climate Impact Partners has signed a deal with Microsoft to provide 1.5 million tonnes of verified carbon removal credits from a large-scale afforestation project in India over 30 years, the company said on Wednesday.
The agreement supports the Panna afforestation project in Madhya Pradesh, which will plant up to 11.6 million native trees across 20,000 hectares of farmland and community land.
Microsoft’s purchase represents half of the project’s total carbon removal output, making it the company’s largest initiative in the Asia-Pacific region and its first in India.
Rigorous Assessment and Environmental Benefits
The project, developed by Climate Impact Partners in collaboration with Terra Natural Capital, has undergone three years of due diligence, pilot activities, and third-party assessments to ensure quality standards.
It aims to provide economic, environmental, and social benefits, including financial returns to farmers, biodiversity restoration, and water conservation infrastructure.
“By securing a long-term supply of high-quality carbon credits, this model empowers companies like Microsoft to meet their ambitious climate targets, drive growth in the carbon removal market, and bring benefits to communities most impacted by climate change,” Sheri Hickok, CEO of Climate Impact Partners, said in a statement.
Local Impact and Community Involvement
The afforestation project has already planted 1.2 million trees across 100 communities, with plans to expand further. It will also train farmers in sustainable agricultural practices and implement water conservation measures, including ponds, borewells, and drip irrigation systems.
“At Microsoft, we believe that high-quality, nature-based solutions are vital to addressing climate change,” said Brian Marrs, senior director of energy markets at Microsoft. “Panna forms an important part of our growing portfolio of carbon removal projects.”
Verification and Long-Term Financing
The project will be verified under Verra’s latest Afforestation, Reforestation and Revegetation Methodology, or VM0047, and rated under the Integrity Council for the Voluntary Carbon Market’s Core Carbon Principles.
It has received an A rating from carbon credit ratings agency BeZero.
Erica Vertefeuille, managing director at Terra Natural Capital, emphasized the importance of long-term financing in scaling carbon removal projects.
“This transaction reflects the power of collaboration between trusted project developers, corporate demand, and innovative finance to unlock climate impact,” she said.
The deal highlights a growing trend of corporations investing in large-scale carbon removal projects as part of their decarbonization strategies, as companies seek to meet net-zero commitments amid increasing regulatory and investor scrutiny.
