As part of Microsoft's broader plan to go carbon-negative by 2030 and remove more carbon dioxide from our atmosphere than it produces, the software giant recently signed a deal with sustainable forest management firm EFM to purchase 3 million carbon removal "credits".
The deal includes an offtake agreement for the delivery of up to 700,000 credits over the next decade (through 2035) from a 68,000-acre property in Washington State’s Olympic Peninsula. The sustainable forest management firm will transition the plot to climate-smart forest management under its FSC-certified model.
Microsoft's Climate Innovation Fund (CIF) has already made its first reforestation investment in the United States by backing EFM Fund IV. As a result, the investment has secured an additional 2.3 million high-quality credits for Microsoft to leverage in the future.
Microsoft’s support marks a pivotal step in accelerating support for high-quality improved forest management projects. Their leadership sets a strong precedent for the carbon market and reinforces the importance of natural forests as a scalable natural climate solution in the US. With their support, we see Fund IV growing and producing significant climate benefits alongside financial value for its investors.
EFM CEO, Bettina von Hagen
The fund aims to raise up to $300 million, which will be used to enhance and improve forest management projects. According to Microsoft's Senior Director of Energy & Carbon Removal, Brian Marrs:
“Microsoft recognizes the important role of high-quality, nature-based solutions in meeting our Carbon Negative by 2030 goals. Our collaboration with EFM is a significant step towards unlocking the value of the latest scientific advancements in improved forest management as a carbon removal pathway. We are proud to contribute to climate-smart forest management in Microsoft’s own backyard on the Olympic Peninsula.”
The EFM IV fund will focus on securing forest properties in the western United States before expanding its efforts nationwide. The sustainable forest management firm will also leverage this opportunity to explore domestic markets where climate-smart management can provide a competitive edge for investors.
In 2023, Microsoft announced its long-term deal with Heirloom, a California-based company that specializes in carbon removal from the environment. The deal allowed Microsoft to buy 315,000 metric tons of carbon removal.
Additionally, Heirloom is helping Microsoft capture carbon emissions across its facilities in the US.
