How Will Microsoft's 12-year Soil Carbon Removal Deal Work?

Microsoft has taken a bold step in its journey toward carbon negativity by signing a landmark 12-year offtake agreement with Agoro Carbon to purchase 2.6 million soil-based carbon removal credits. 

“Agoro Carbon’s approach to soil-based carbon removals reflects the kind of scientific rigor and long-term solution we look for in our carbon removal portfolio,” said Brian Marrs, Senior Director of Energy Markets at Microsoft. 

“This agreement supports our broader sustainability goals at Microsoft, including support of scalable, agriculture-based climate solutions that deliver measurable impact over time.”

What are carbon removal credits – and why are they controversial?

Carbon removal credits are certificates representing the removal of one metric ton of carbon dioxide (CO₂) or its equivalent from the atmosphere. 

Unlike traditional carbon offsets – which compensate for emissions by funding projects that avoid new emissions – removal credits are designed to physically extract and store carbon, whether through natural processes like reforestation or technological solutions such as direct air capture.

Soil-based carbon removal credits, as in the Microsoft-Agoro Carbon agreement, are generated when farmers adopt regenerative practices like cover cropping, reduced tillage and improved grazing, which increase the amount of carbon stored in soils. These practices not only sequester carbon but also improve soil health, water retention, biodiversity and resilience to extreme weather.

Despite their promise, carbon removal credits face scrutiny. 

Critics question the permanence of soil carbon storage, the accuracy of measurement and verification and the potential for double-counting or overestimating climate benefits. The voluntary carbon market has seen cases of over-credited projects and inconsistent standards, raising concerns about greenwashing. 

To address this, leading buyers like Microsoft demand rigorous monitoring, reporting and verification (MRV) and third-party validation to ensure credits are truly additional, durable and scientifically robust.

Agoro Carbon: Science-driven, farmer-focused

Founded by Yara International, Agoro Carbon partners with farmers and ranchers across the US to sequester carbon in soils and generate verified carbon credits. 

The company’s projects are developed under Verra’s VM0042 Improved Agricultural Land Management methodology, which sets stringent criteria for measuring and verifying soil carbon gains.

Agoro Carbon’s approach is deeply farmer-centric. By providing agronomic and financial support, the company enables producers to implement regenerative practices that not only capture carbon but also improve yields, input efficiency and resilience to climate extremes. Enrolled farmers benefit from a new income stream while enhancing the long-term health and productivity of their land.

The company emphasises quality and transparency, combining advanced modeling, field-level soil sampling and third-party verification to ensure the durability and credibility of its credits. 

“This agreement with Microsoft is the strongest endorsement of our quality-driven, farmer-focused approach to soil carbon sequestration,” says Elliot Formal, CEO of Agoro Carbon.

“We’re working with farmers and ranchers—offering hands-on support from our agronomists to ensure they achieve meaningful, long-term outcomes. From initial implementation to sustained success, we’re committed to helping producers build resilient operations for the future.” 

Microsoft’s carbon strategy

Microsoft has emerged as the world’s largest corporate buyer of carbon removal credits, contracting nearly 22 million tons of removals last year alone as part of its pledge to become carbon negative by 2030 and to remove all its historical emissions by 2050.

The company’s carbon removal portfolio spans a diverse range of solutions—including biochar, forest management, BECCS (bioenergy with carbon capture and storage) and reforestation—reflecting a commitment to both technological and nature-based approaches.

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