Microsoft invests in forest-based carbon removal
Microsoft continues its push to become carbon-negative by 2030 through a new partnership with sustainable forestry firm EFM. The company has agreed to purchase 3 million carbon removal credits, with up to 700,000 of those delivered by 2035. The credits will come from a 68,000-acre forest in Washington State’s Olympic Peninsula, which EFM will manage using FSC-certified, climate-smart forestry practices to improve carbon capture and long-term forest health.
This initiative is Microsoft’s first U.S.-based reforestation investment through its Climate Innovation Fund, which supports scalable solutions to combat climate change. In addition to the offtake agreement, Microsoft’s backing of EFM’s Fund IV has secured access to 2.3 million more high-quality credits for potential future use. The fund is targeting $300 million to expand improved forest management across the western U.S., with plans to grow nationwide eventually.
EFM CEO Bettina von Hagen called Microsoft’s support a milestone for nature-based carbon solutions in the U.S., helping to strengthen the credibility of improved forest management in the voluntary carbon market. Microsoft’s Brian Marrs emphasized the role of natural strategies in reaching the company’s climate goals, noting that the collaboration brings scientific and environmental value close to home.
The move complements Microsoft’s broader carbon removal strategy, which also includes a 2023 deal with Heirloom, a California startup specializing in direct air capture, for 315,000 metric tons of carbon removal. Together, these efforts reflect Microsoft’s commitment to combining natural and technological solutions to address the climate crisis.
