A Microsoft data centre.
MICROSOFT has announced another record-breaking purchase of soil carbon credits, striking a deal with US company Indigo Ag to purchase 2.85m credits over 12 years.
The tech giant has been a long-time supporter of soil carbon, having made large-scale purchases off Indigo in recent years. It last year purchased 60,000 tonnes off the company and in 2024 it purchased 40,000 tonnes.
Microsoft also made headlines in Australia in 2019, with purchase of soil carbon credits from several companies – including the Wilmot Cattle Company.
The company has made a pledge to become “carbon negative” by 2030, saying it will draw more carbon out of the atmosphere than it emits.
“We will achieve this through a portfolio of negative emission technologies (NET) potentially including afforestation and reforestation, soil carbon sequestration, bioenergy with carbon capture and storage (BECCs), and direct air capture (DAC),” the said.
Growing support for regenerative agriculture
In announcing the deal, Microsoft and Indigo have been keen to promote the use of “regenerative agriculture” practices in increasing soil carbon – a trend that has been growing in the US.
Last year, McDonald’s announced a US$200m fund to support regenerative practices. I joins several other multi-national organisations in supporting regenerative agriculture – including PepsiCo, Unilever and Nestle.
Indigo’s Meredith Reisfield said: “Microsoft’s purchase highlights the transformative power of regenerative agriculture to support watersheds, support farming communities, and advance global net-zero goals.
“Indigo is a proud catalyst of today’s soil carbon market, with our long-standing history of farmer collaboration and proven impact, already saving 64 billion gallons of water and issuing nearly one million tonnes of CO2e carbon removal credits since 2018.”
Microsoft director of carbon removal Phillip Goodman said: “Microsoft is pleased by Indigo’s approach to regenerative agriculture that delivers measurable results through verified credits and payments to growers, while advancing soil carbon science with advanced modeling and academic partnerships.
“Indigo is strengthening the carbon market through their commitment to enhancing project quality, championing the improvement of third-party standards, and producing high-integrity carbon removal credits.”
According to Indigo Ag the agreement is one of the first soil carbon deals to feature credits approved under the Integrity Council for the Voluntary Carbon Market’s (ICVCM) Core Carbon Principles. Indigo said it added measures to reduce reversal risk throughout the 40-year durability term agreed with Microsoft, in addition to the SEP’s 100-year monitoring and reversal compensation obligations.