Microsoft inks carbon removal deal with offsets startup Chestnut

Microsoft Corp has struck a deal with offsets startup Chestnut Carbon to acquire credits linked to the removal of carbon dioxide from the atmosphere

Microsoft Corp has struck a deal with offsets startup Chestnut Carbon to acquire credits linked to the removal of carbon dioxide from the atmosphere, the firms said Wednesday, as part of the tech giant's push to meet its sustainability goals.

Unlike other offset deals that generate credits by preserving trees, Chestnut plants new trees on land previously farmed or under other usage, providing greater environmental benefit, its founder Ben Dell said in an interview.

Under the agreement, Microsoft will acquire carbon removal credits for a period of 15 years from Chestnut from trees planted in the Mississippi Alluvial Valley. The first credits will be delivered to Microsoft in three years, to allow for the trees planted to mature, said Dell.

The parties declined to say how much Microsoft was paying for the credits, which equate to removing up to 2.7 million tons of carbon through the life of the contract.