Microsoft has signed a multi-year agreement with forest investment and management firm EFM to receive up to 700,000 nature-based carbon removal credits through 2035. The credits will come from EFM’s plans to implement climate-smart forestry practices on 68,000 acres of forests in Washington State’s Olympic Peninsula. This project aims to not only remove carbon but also develop the property as a “robust carbon sink.”
Key Components of the Agreement
The deal is part of Microsoft’s broader strategy to become carbon negative by 2030 and remove all historical carbon emissions by 2050. In addition to the carbon credits, Microsoft has invested in EFM Fund IV through its Climate Innovation Fund. This fund targets $300 million for sustainable forestry practices across the U.S. and is expected to secure additional high-quality carbon removal credits.
Investment and Expected Outcomes
While the exact investment amount remains undisclosed, Microsoft expects the partnership to yield an additional 2.3 million carbon removal credits through EFM’s investment platform. The company highlights that this agreement brings “significant ecosystem and community benefits” beyond just carbon removal.
Industry Context and Future Implications
This agreement follows a similar deal between Meta and EFM last month, where Meta secured 676,000 nature-based carbon removal credits over 10 years. Both deals are considered pioneering contracts in the nature-based carbon removal space. Microsoft’s Senior Director of Energy and Carbon Removal, Brian Marrs, emphasized the importance of nature-based solutions in achieving their carbon negative goals and praised the collaboration with EFM as a significant step forward in improved forest management as a carbon removal strategy.
