Microsoft Expands Carbon Removal Portfolio with Major Enhanced Rock Weathering Agreement

Microsoft Expands Carbon Removal Portfolio with Major Enhanc - Major Carbon Removal Agreement Microsoft has reportedly signed

Major Carbon Removal Agreement

Microsoft has reportedly signed its third carbon removal agreement with enhanced rock weathering firm Undo, according to recent reports. Sources indicate the deal involves 28,900 tons of carbon removal credits, representing Microsoft’s continued expansion into emerging carbon removal technologies.

Financing and Delivery Timeline

The agreement was reportedly supported by a dedicated debt facility from Inlandsis, a Canadian climate fund managed by Fondaction Asset Management. Analysts suggest this financing structure provides the capital necessary for Undo to deliver on the purchase, with the carbon removals expected to be completed by 2036.

Enhanced Rock Weathering Technology

According to reports, enhanced rock weathering accelerates natural geological processes by crushing silicate rocks like basalt or wollastonite and spreading them over agricultural land. When rainwater containing CO2 interacts with these minerals, the carbon dioxide mineralizes into solid carbonate, effectively removing it from the atmosphere. The report states this latest agreement will support the application of 90,000 tons of silicate rock across more than 30,000 acres of Canadian farmland.

Strategic Importance for Microsoft

Phillip Goodman, director of carbon removal portfolio at Microsoft, reportedly commented that “Enhanced rock weathering is a promising pathway to gigatonne-scale carbon removal. Undo’s commitment to scientific rigor gives us confidence in both the durability of these credits and their role in helping Microsoft achieve its goal of being carbon negative by 2030.”, according to technological advances

Financing Innovation in Carbon Markets

Jim Mann, founder and CEO of Undo, reportedly emphasized that “Innovative financing is the catalyst for unlocking gigatonne-scale carbon removal. The support of Inlandsis shows how financial backers can help transform carbon removal into a genuine asset class – one that is scalable, tradable, and investable.”, according to market trends

Sources indicate this represents the first collaboration between Undo and Inlandsis. David Moffat, managing director at Inlandsis, reportedly noted this marks “our first investment in an ERW project and the first Canadian investment for our second fund – and highlights our commitment to advancing carbon finance across Canada and beyond.”, according to additional coverage

Microsoft’s Broader Carbon Removal Strategy

According to industry analysts, this agreement continues Microsoft’s strategic investment in multiple enhanced rock weathering companies. Reports indicate Microsoft has also secured removal agreements with other ERW firms including:

  • 12,000-ton deal with US firm Terradot
  • 8,000-ton agreement with Eion
  • 11,400-ton commitment with Lithos Carbon

Risk Management and Verification

The purchase was reportedly underwritten by CFC, a specialist insurance provider that supports high-quality carbon market initiatives by mitigating risk and enabling transactions. Sources suggest this insurance backing helps address verification and delivery concerns that have challenged some carbon credit markets.

According to the report, delivery of the carbon removal will be coordinated with local farms to accommodate planting and harvesting schedules alongside local conditions, ensuring the agricultural integration supports both carbon removal and food production.

References & Further Reading

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