Published by Todd Bush on May 13, 2025
In a landmark move that’s catching the attention of environmental and corporate circles alike, Microsoft has inked a deal worth up to $300 million with U.S.-based forest manager EFM. This bold partnership includes the purchase of 3 million nature-based carbon removal credits—a step that sets a high bar for climate commitments in the tech world.
EFM’s nature-first strategy includes sustainable forestry, reforestation, and land conservation. With Microsoft as a major backer, this deal demonstrates how nature-based solutions can play a serious role in offsetting industrial emissions while delivering broader ecosystem and community benefits.
"This agreement shows Microsoft's serious commitment to using natural ways to fight climate change," the press release noted. And it's not just about planting trees—it’s about transforming how big corporations support decarbonization on a global scale.
>> RELATED: Microsoft Signs Forest Restoration Deal to Remove 3.5 Million Tons of CO2
Microsoft’s Climate Innovation Fund didn’t just stop at purchasing carbon credits. It also invested directly into EFM’s Fund IV, which aims to raise $300 million to support climate-smart forestry projects across the United States.
These initiatives prioritize longer harvest cycles, planting diverse tree species, and maintaining healthy watersheds. This approach makes forests not only carbon sinks but also more resilient against drought, wildfire, and disease.
In return for its investment, Microsoft may gain access to up to 2.3 million more carbon credits, helping the company secure the long-term sustainability of its carbon removal goals.
Carbon credits have long been a tool for climate mitigation, but not all credits are created equal. The deal with EFM focuses on high-quality, verifiable, nature-based carbon removal credits—those backed by science and results.
Forests, in particular, have immense potential. Studies from the World Resources Institute show forests can absorb up to 30% of global CO₂ emissions each year. And with better land management, their contribution can be even more significant.
These credits also appeal to corporations because they support multiple goals: reducing emissions, restoring ecosystems, and fostering community development.
The voluntary carbon market is booming. A report by MSCI predicts the market could be worth $45–250 billion by 2050, with demand driven by corporate climate goals and the shift toward higher-quality, transparent carbon removal solutions.
As more businesses like Microsoft get involved, the industry is evolving from a fringe effort to a core component of sustainability strategies. Nature-based credits are becoming a preferred tool for companies facing hard-to-abate emissions.
According to McKinsey & Company, demand for carbon credits may increase 15x by 2030, reaching 1.5 to 2 billion metric tonnes of CO₂ equivalent annually.
>> In Other News: Aemetis Biogas Signs $27 Million Agreement with Centuri to Build Gas Cleanup Systems for 15 Dairy Digesters
Microsoft’s latest initiative is a cornerstone in its broader plan to be carbon negative by 2030. It also aims to remove all the carbon it has ever emitted since its founding by 2050.
To hit those targets, the tech giant needs to rely not just on reducing emissions through energy efficiency and renewables, but also on removing emissions from hard-to-decarbonize operations—such as cloud computing and data centers.
“We believe that nature-based solutions, like sustainable forestry, are essential to advancing global climate goals,” said Lucas Joppa, Microsoft’s former Chief Environmental Officer. “These investments are part of our long-term vision to support a carbon-negative future.”
EFM, short for Ecotrust Forest Management, has become a rising name in the nature-based carbon credit space. Their work is rooted in both environmental science and community economics.
Their forestry practices not only remove carbon from the atmosphere but also promote biodiversity, water health, and economic opportunities in rural communities. This creates a triple-win scenario—climate benefit, ecosystem restoration, and rural job creation.
EFM’s Fund IV is expected to support projects that use data-backed forestry techniques. These include satellite imagery and AI-driven monitoring systems that ensure transparency, efficiency, and results.
Beyond this single deal, Microsoft continues to lead the tech sector’s sustainability charge. It has committed to running entirely on renewable energy by 2025, and its supply chain emissions are also under review for drastic reductions.
According to 2024 reports, Microsoft accounted for 63% of all global carbon dioxide removal purchases, acquiring 5.1 million metric tons of durable carbon removal credits. That’s more than any other company globally.
Its investments span both nature-based and technology-driven solutions, making Microsoft a leader in diversified carbon removal strategies.
Big names like Meta, Amazon, and Google are investing heavily in high-quality carbon credits. A BloombergNEF report forecasts a $1.5 trillion funding need for climate projects in emerging carbon markets by 2030.
Nature-based solutions—such as those provided by EFM—are proving to be cost-effective and fast-acting tools to achieve near-term decarbonization goals.
The World Bank estimates that $800 billion in investment in nature-based climate strategies could create over 80 million jobs globally—especially in underserved and rural regions.
Microsoft’s deal with EFM isn’t just another climate pledge. It’s a strategic investment in the future of carbon markets, ecosystems, and equitable climate action.
It combines the credibility of science-based forestry, the scale of corporate finance, and the long-term goals of sustainability. This fusion of priorities is exactly what the carbon removal market needs right now.
As the demand for carbon credits continues to surge, partnerships like this will pave the way. They’ll not only help fight climate change but also transform how corporations interact with the natural world.
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Inside This Issue ⚡ Energy Department Removes Barriers for American Energy Producers, Unleashing Investment in Domestic Hydrogen 🛳️ MASH Makes Powers First Vessel Trial With Biofuel From a Carbon-...
Inside This Issue 🛢️ Conestoga Energy Completes Drilling of Class VI Carbon Capture & Sequestration Well, Advances Toward EPA Application 🏗️ How Microsoft and Sublime Systems Are Reinventing C...
Inside This Issue 💸 EDF Slams Repeal of 45V Hydrogen Credit, Citing $32Bn in Higher Household Energy Costs and Job Losses 🤝 Johnson Matthey to Sell Blue Hydrogen Business to Honeywell as Part of £...
The U.S. Department of Energy’s (DOE) Hydrogen and Fuel Cell Technologies Office today removed barriers for the American hydrogen industry by updating its 45VH2-GREET modeling tool. The latest vers...
NETL Patents New Process for Extracting Critical Resources from Coal Fly Ash at High Quantities
NETL researchers developed a new process for extracting economically and strategically vital rare earth elements (REE) and critical minerals (CM) from America’s coal fly ash at high quantities and ...
World’s First Plant That Captures CO2 From Air to Make Building Materials Opens
Aggregates produced using CO2 captured by Mission Zero Technologies ‘Direct Air Capture’ technology (Image courtesy of Mission Zero Technologies) A demonstration project that uses direct air captu...
Plug Power’s Georgia Hydrogen Plant Sets U.S. Production Record Using Plug Electrolyzer Technology
April 2025 Marks Industry-Leading Milestone with 300 Metric Tons of Liquid Hydrogen Produced WOODBINE, Ga., -- Plug Power Inc. (NASDAQ: PLUG), a global leader in comprehensive hydrogen solutions, ...
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.