News Summary

Microsoft has announced a significant partnership with the reforestation startup Chestnut Carbon, committing to purchase over 7 million tons of carbon credits through a 25-year agreement. This collaboration will enable Chestnut Carbon to reforest 60,000 acres of land across Arkansas, Louisiana, and Texas. The tech giant’s move comes amid challenges to reduce its carbon emissions, which saw a 29% increase since 2020 due to the rise in AI and cloud computing demands. Chestnut Carbon focuses on planting and monitoring new forests to ensure they thrive and aren’t destroyed. The company differentiates itself by supporting diverse, native plantings, which are more resilient and command premium prices for their carbon credits. This initiative aligns with Microsoft’s broader strategy to counterbalance its greenhouse gas emissions, which totaled 17.1 million tons in 2023 before offsets. Despite nature-based carbon credits facing scrutiny, such as the Verra certification controversy, Chestnut Carbon now uses Gold Standard for its certifications.