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Key Highlights:

  • Microsoft has announced the acquisition of 40,000 carbon credits from Indigo Ag, a leading agricultural technology firm. This transaction marks the highest quantity of credits Indigo Ag has delivered to date.
  • The carbon credits in question are derived from sustainable agricultural practices aimed at soil enrichment. These credits undergo verification based on the guidelines of the Climate Action Reserve, a recognized authority for carbon market offsets.
  • Microsoft selected Indigo Ag’s carbon program as part of its decarbonization efforts, aiming to utilize soil-based carbon removals to support its objective to achieve carbon negativity by 2030.

Insights:

The carbon credits depend on sustainable practices that farmers currently use or plan to adopt, promoting both soil carbon retention and greenhouse gas reduction. Techniques such as cover cropping, reduced tillage, and crop rotation help farmers achieve these dual objectives.

Furthermore, these farmers can generate an additional revenue stream through the sale of soil-based carbon credits, which Indigo Ag facilitates. Notably, farmers receive at least 75% of the average credit price following a transaction. So far, Indigo has successfully issued nearly 300,000 offset credits.

Microsoft’s acquired credits originate from Indigo’s third carbon crop, generated by farms spread across 28 states in the U.S.

According to a press release from June 20, the partnership signifies the growing necessity for scientifically-supported agriculture soil-based credits in climate activism and showcases the increasing sophistication of voluntary carbon markets.

Indigo Ag’s CEO, Dean Banks, noted that this agreement marks a significant milestone for the company’s carbon initiative, underscoring the importance of nature-based carbon solutions.

This agreement is part of a series of initiatives by Microsoft aimed at reducing its carbon footprint. Recently, the tech giant also signed a deal with Anew Climate for over 970,000 carbon removal credits generated through forest management and afforestation projects across the U.S.

Previously, Microsoft had also entered into a significant carbon removal agreement with Stockholm Exergi, alongside a 6-year offtake deal with Catona Climate and a renewable energy credits purchase agreement with Recurrent Energy this year.

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