Microsoft Leads Carbon Removal Credit Market with $6M Investment
Microsoft has made significant investments in carbon removal credits, purchasing five times more than the next 10 largest buyers combined. According to CDR.fyi, a data and analytics provider, Microsoft contracted for just over 6 million removal credits from four projects spanning forests, agriculture, and industrial carbon capture.
The company is also known for open-sourcing its learnings and collaborating on standards for the evolving removals market. In recent years, several scandals have plagued the carbon markets due to problems with baselines, estimates of what would have happened if a project did not exist.
To avoid this issue, Microsoft uses 'dynamic baselines' that are updated over time. This approach is used in nature-based solutions, such as reforestation projects in Brazil, where developers adjust the baseline by monitoring control areas representative of pre-project conditions.