Microsoft signs massive carbon credit deal with reforestation startup Chestnut Carbon

Microsoft announced Thursday that it was buying millions of tons of carbon credit from Chestton Carbon.

The 25 -year contract will enable Chestton Carbon Reconsideration 60,000 acres of land across Arkansas, Louisiana and Texas, Axius ReportThe Recently, the technology company has struggled to have its carbon emissions as the construction and use of AI data centers has increased.

Last year, Microsoft reported that the Boom in AI and Cloud Computing increased its emergence of 20% since 2021. In 2023, the company reports to generate 17.1 million tons Greenhouse gas emission before offset.

Carbon credit comes in different flavors. Chestton focuses on carbon reconsideration, where the company monitors the planting and then monitoring new forests so that they can grow according to the plan and do not cut it. The company currently has eight projects in the southeast USA, which was previously worked as a farm or pasture.

The plants naturally distinguish carbon as they are born, though not all forest-related carbon credit is made evenly. Non-Native, fast growing plants planting projects are usually seen as low quality and are less sold as they do not support so much biodiversity and the plants do not tend to survive long. Different projects that are different, domestic plants usually sell in a premium since ecosystem is more elastic over time.

Even premium carbon credit is a relative agreement compared with some options from the forest land to the aforetance, reviewing and avoiding forest land. Chestonot Carbon sold credit for $ 34 per ton last year₂ Out of the atmosphere, today it costs about $ 600 to $ 1000 per ton. Despite the difference between expenditure, he also bought carbon credit from Microsoft Direct Air Capture StartupsThe

For all their energy, nature-based carbon credit is not always perfect. The largest nature -based carbon credit portfolio has a topic of Verra Extensive investigation In 2023, the company said that the company exceeded the climate of its projects. Scandal CEO oust And the industry has rebuilt the values ​​that used it. Chestton Carbon, which was previously used to certify the carbon credit to Vera, uses gold values ​​today.