Microsoft’s Key Role in Growing 35 Million Trees in the US

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Microsoft and Chestnut Carbon have signed a forest-focused carbon removal deal
Microsoft and Chestnut Carbon have signed a 25-year deal to provide 7 million tons of carbon removal credits from reforestation in the southern US

Microsoft has sealed a long-term agreement with Chestnut Carbon to provide high-quality, nature-based carbon removal from its afforestation, reforestation and revegetation (ARR) project in the Southern US.

The deal, one of the largest ARR offtakes in the US, spans 25 years and will deliver over 7 million tons of carbon removal credits.

The carbon removal will be derived entirely from Chestnut's ARR project in the southern United States, including Arkansas, Texas and Louisiana.

It is in addition to an initial agreement between Chestnut and Microsoft in December 2023 and involves multiple phases – estimated to restore 60,000 acres of land by planting over 35 million native, biodiverse hardwood and softwood trees.

Ben Dell, CEO of Chestnut and Managing Partner of Kimmeridge

Delivering high-quality credits

Ben Dell, CEO of Chestnut and Managing Partner of Kimmeridge, said: “We're excited to be expanding our collaboration with Microsoft given their market leadership in net zero commitments and the signing of a second agreement within the span of a year reaffirms their view that Chestnut is delivering high quality removal credits.”

He added: "We're confident in our belief that nature-based afforestation solutions are the most attractive, scalable and cost-effective means for removing carbon from the atmosphere today.

“We continue to bring high-quality credits to market for discerning customers and look forward to building on our leading position in the market."

Brian Marrs, Senior Director of Energy & Carbon Removal at Microsoft

The Microsoft viewpoint

Brian Marrs, Senior Director of Energy & Carbon Removal at Microsoft, said: “Microsoft is thrilled to announce that it has entered into a new long-term offtake agreement with Chestnut Carbon, a Kimmeridge company, to purchase high-quality, carbon removal from its afforestation, reforestation, and restoration projects across the southern United States.”

He added: “This is one of – if not the – single largest voluntary corporate investments in conservation forestry in the United States, will deliver 7 million tons of carbon removal over a 25-year period, restore roughly 60,000 acres of land and plant over 35 million native, biodiverse hardwood and softwood trees.”

He said Microsoft’s deal is similar to the structure of a clean energy power purchase agreement, adding: “We are committing to purchasing carbon removal years into the future.

“This stability helps developers like Chestnut pursue financing from institutional investors and, in doing so, affords more focus to high-quality products.”

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Chestnut Sustainable Restoration Project

The Chestnut Sustainable Restoration Project stands out because of its focus on creating a long-lasting ecosystem of native forests at scale.

With Microsoft's offtake from the project, Chestnut is on track to grow its ARR portfolio to 500,000 acres by 2030 and remove 100 million tons of CO2 from the atmosphere over a 50-year crediting period.

Brian said: “This agreement with Chestnut Carbon is another positive step towards Microsoft's goal to become carbon negative by 2030.

“We look forward to the prospect of scaling forest restoration within the United States, attracting sophisticated private capital in the process.

“We are glad to see the Sustainable Restoration Project diversify the ecological impact of our global carbon removal portfolio.”

A forest in the foothills of a mountain range

Chestnut says key elements of its Sustainable Restoration Project include:

  • High-quality, removal-based credits

The project is registered with Gold Standard. Resulting credits are issued per carbon removal measurements, not emissions avoidance.

  • Durability

Chestnut stands behind the durability of its carbon sequestration through long-term conservation of the land, planting biodiversity and risk mitigation practices.

  • Additionality

The project restores marginal agricultural lands to native forests. These lands would not be restored without the global carbon credit market.

  • Environmental and stakeholder benefits

The project delivers improvements to native wildlife habitats and air and water quality ,expands land use alternatives and emphasises ongoing community engagement and economic development.


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