Microsoft has entered an offtake agreement with Chestnut Carbon to purchase nature-based carbon credits that will support the carbon removal company's United States-based afforestation project.
The agreement includes 15 years of nature-based credits that will support what is reportedly the largest afforestation project certified under the Gold Standard, one of the highest standards for carbon projects. The first phase of the project is expected to remove 362,000 tons of carbon, with up to 2.7 million tons removed in subsequent phases.
Carbon credits, which companies may purchase to offset their carbon footprint, support projects that work to remove carbon from the atmosphere, from carbon capture to reforestation and ecosystem restoration. Chestnut Carbon sequesters carbon through the establishment of forests, or afforestation, then ensures long-term conservation of the land, including planting biodiverse species and engaging in risk mitigation practices.
"We're pleased to be working with Microsoft on its commendable journey to offset emissions through high-quality nature-based solutions,” said Chestnut Carbon CEO Ben Dell. “When launching Chestnut in 2022, we were guided by a strong belief that these solutions are the most attractive, scalable, and cost-effective means for sustainability-minded organizations. We are actively building out our platform to meet demand from the most discerning customers and look forward to announcing additional blue-chip partnerships in the near future."
Chestnut Carbon is growing its capacity to 500,000 acres, representing about 100 million tons of carbon removal, to meet the demand for effective, quality carbon credits.
The offtake agreement follows Microsoft’s recent purchase of up to 1.5 million carbon credits from Brazilian startup, Mombak. These credits will also support forest conservation as the company works to plant over 100 species of native trees in the Amazon basin.
Nature-based carbon credits currently represent the largest category of all carbon credits available on the market. They are also considered a valuable tool to address the amount of land conservation needed to reduce carbon emissions and limit extinction risk for threatened species. According to research, carbon sequestration in agricultural soils and forests currently represents the best short-term solution for carbon removal.
Nature-based solutions have clear environmental benefits, but continued conservation and careful measurement of the amount of carbon sequestered in a given project is reportedly what makes carbon credits legitimate and worth supporting.
Chestnut Carbon credits are considered high quality because, beyond the initial planting of trees, new forests are monitored for five years before carbon sequestration measurements are made. Chestnut Carbon’s projects also focus on family-owned forestlands in the U.S., such as Black River Farm in Arkansas and Rooks Ranch in Alabama. Such projects may also support local communities, improve air and water quality in the area, and restore natural habitats.
