Microsoft Backs Major Forest Carbon Credit Agreement

Microsoft has entered into a 10-year agreement that will deliver 4.8 million nature-based carbon removal credits, marking one of the largest forest-based carbon removal initiatives in the U.S. to date. The project spans over 425,000 acres of managed forest across New York, Virginia, West Virginia, Kentucky, and Florida.

What makes this deal stand out is its scale and permanence. Spanning 425,000 acres across five states, it’s the largest permanent forest conservation initiative ever undertaken in the Eastern U.S.—and notably, it’s not funded by philanthropy. Instead, Microsoft’s carbon credit purchase directly enables this long-term forest protection through binding conservation easements and covenants. Unlike typical offsets, this project is one of the first to apply next-generation carbon standards, including satellite-based monitoring, ground data, and AI-powered tools to ensure real-time tracking. Carbon removals begin in 2025 and will continue through 2035, with Aurora Sustainable Lands owning and managing the forests throughout. This integrated structure provides accountability from “root to credit,” offering a new model for using carbon finance to drive measurable and permanent climate outcomes.

Developed in collaboration with Anew Climate and Aurora Sustainable Lands, the initiative uses Improved Forest Management (IFM) practices aligned with the American Carbon Registry’s latest IFM v2.1 protocol. This version introduces dynamic baselines, advanced monitoring, and updated permanence conditions to address long-standing credibility challenges in forest carbon credits.

Material volumes of credits are expected to begin delivery in 2025—an accelerated timeline compared to typical nature-based carbon removal projects, many of which can take several years before generating measurable impact.

Anew Climate's proprietary Epoch Evaluation Platform plays a central role, using machine learning, satellite imaging, drone tech, and on-the-ground verification to track carbon stock in real time. The enhanced transparency and measurement rigor align with growing buyer demand for verified, additional, and durable offsets.

Aurora’s Integrated Ownership Model Aims to Deliver Long-Term Carbon Value

Aurora Sustainable Lands contributes more than just forest acreage. The firm operates an integrated ownership and management model that covers everything from land acquisition to carbon credit verification. This structure reduces risk and streamlines project oversight, addressing coordination issues that can weaken multi-stakeholder initiatives.

The company's holdings include over 1.7 million acres of forestland previously used for industrial logging. Now managed under long-term carbon stewardship, these lands are subject to perpetual working forest easements and legally binding sustainability covenants—critical components in addressing durability and permanence for nature-based carbon projects.

For Microsoft, the deal supports its goal of becoming carbon negative by 2030. For the broader voluntary carbon market, the structure reflects a shift toward projects that can deliver verifiable results quickly, at scale, and with improved durability.