Microsoft kicks 2026 off with raft of carbon-removal deals

Tech giant helped tip market over $1bn last year, as analysis points to ‘fundamental restructuring’ 

Microsoft has picked up where it left off in 2025, announcing three major carbon removal deals this week.  

The US tech giant, which still has ambitions to become ‘carbon negative’ despite its increasing emissions, has become the largest corporate purchaser of removal credits in recent years.

Microsoft’s first deal of 2026, announced on Wednesday, will see it purchase 2 million tonnes of Afforestation, Reforestation, and Revegetation credits over the next nine years, from Rubicon Carbon.  

The credits will be sourced from Uganda-based social enterprise Kijani Forestry.

A day after that announcement, Microsoft revealed it had also signed an agreement with sustainable agriculture solutions provider Indigo AG, in which it committed to buying 2.85 million tonnes of soil-based removal credits over the next 12 years.     

The latest deal with Indigo is substantially larger than those it undertook in 2024 and 2025, which represented carbon removals of just 40,000 tonnes and 60,000 tonnes, respectively.  

Microsoft’s third and final deal of the week was with India-based biochar removal specialist Varaha and aims to deliver 100,000 tonnes of carbon removal over three years.

Last week, Salesforce also completed a $5m carbon removal deal with Swedish provider Milkywire, and Bain & Company announced its first direct air carbon capture deal, committing to buying 9,000 tonnes of removals over the next three years from 1PointFive.  

New research on the voluntary carbon markets found flows of more than $1bn, while retirements were down 4.5%.   

The report by carbon data firm Sylvera suggested the market was going through a “fundamental restructuring” with a pivot toward future-focused offtake removal credits.

“There is clear market fragmentation, between high-integrity projects commanding quality premiums and tightening supply, and legacy projects languishing with abundant but unwanted inventory – potentially stranded assets,” it explained.   

Sylvera revealed that $12.25bn of offset deals were announced in 2025, up from $3.95bn in 2024, with more 85% going to Microsoft.