Key Impact Points:
- Microsoft’s Largest APAC Carbon Removal Project: The company will purchase 1.5 million tonnes of verified carbon removal credits from the Panna afforestation project over 30 years.
- Significant Environmental and Community Benefits: The 20,000-hectare project will remove 3 million tonnes of carbon while supporting local farmers, water conservation, and biodiversity.
- Innovative Financing Model: Terra Natural Capital is funding the initiative, ensuring long-term sustainability and corporate participation in climate solutions.
Microsoft Expands Carbon Removal Investments
Climate Impact Partners has partnered with Terra Natural Capital to finance the Panna afforestation project in Madhya Pradesh, India, a large-scale carbon removal initiative spanning 20,000 hectares. As part of the agreement, Microsoft will purchase 1.5 million tonnes of verified carbon removal credits over 30 years, marking its largest carbon removal project in the Asia-Pacific region and first in India.
Sheri Hickok, CEO of Climate Impact Partners, emphasized Microsoft’s commitment:
“By securing a long-term supply of high-quality carbon credits, this model empowers companies like Microsoft to meet their ambitious climate targets, drive growth in the carbon removal market, and bring benefits to communities most impacted by climate change.”
Large-Scale Community and Environmental Impact
Following three years of due diligence, the project has already planted over 1.2 million trees across 100 communities and will expand to 11.6 million mixed native trees. The initiative focuses on economic empowerment, sustainable agriculture, water conservation, and biodiversity restoration:
- Farmers will earn from carbon credit sales and agricultural produce such as fruit and medicinal plants.
- Training programs on climate-smart farming will boost long-term yields.
- Water conservation infrastructure including ponds, borewells, and irrigation systems will support tree growth.
- Native species planting will restore ecosystems, attracting butterflies and bird species to degraded lands.
Brian Marrs, Senior Director Energy Markets at Microsoft, highlighted the importance of such investments:
“Panna forms an important part of our growing portfolio of carbon removal projects. This collaboration ensures that millions more trees are planted, more carbon is removed from the atmosphere, more jobs are created, and more finance flows back to local communities.”
Verified Carbon Credits for Long-Term Sustainability
The project follows Verra’s Afforestation, Reforestation, and Revegetation Methodology (VM0047), approved under the Integrity Council for the Voluntary Carbon Market’s Core Carbon Principle (CCP) label. It has received an A-rating from BeZero’s ex-ante rating system and will be monitored under the Climate, Community, and Biodiversity Standard to track its broader environmental and social impact.
Erica Vertefeuille, Managing Director at Terra Natural Capital, underscored the need for financial backing in large-scale carbon removal projects:
“We recognize that access to project finance is a critical need for the carbon removal market to scale and are committed to providing long-term capital that will accelerate project development.”
By combining corporate investment, sustainable financing, and community-driven reforestation, Panna sets a precedent for large-scale nature-based carbon removal initiatives worldwide.
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