Microsoft Cuts Carbon Removal Purchases Amid AI Expansion

Microsoft has significantly reduced its purchases of carbon removal credits in 2026. The tech giant bought 8.55 million metric tons of credits through mid-July, a drop of 80% compared to the same period last year.

This marks Microsoft's first annual pullback from the carbon removal market since 2023. Despite the decline, the company remains the largest buyer in the voluntary carbon removal market, accounting for nearly half of all transactions so far this year.

The reduced purchasing activity has rippled through the global carbon removal market, with total sales falling by 66% to 18 million metric tons through mid-July. Microsoft's AI expansion and increasing emissions have been cited as factors contributing to the decrease in carbon removal purchases.