Microsoft signed a multi-year offtake agreement to access up to 3 million nature-based carbon removal credits.
EFM finalized a multi-year offtake agreement with the tech company alongside a fund investment for the carbon removal credits.
The deal includes an offtake agreement for the delivery of up to 700,000 credits through 2035 from a recently acquired property in Washington State’s Olympic Peninsula that EFM is transitioning to climate-smart forest management.
Microsoft’s Climate Innovation Fund (CIF) invested in EFM Fund IV, which seeks to mobilize $300 million for climate-smart forestry across the U.S.
This is CIF’s first forestry investment in the U.S. and helps Microsoft secure future streams of up to 2.3 million additional high-quality credits with significant ecosystem and community benefits.
“Microsoft recognizes the important role of high-quality, nature-based solutions in meeting our carbon negative by 2030 goals. Our collaboration with EFM is a significant step towards unlocking the value of the latest scientific advancements in improved forest management as a carbon removal pathway. We are proud to contribute to climate-smart forest management in Microsoft’s own backyard on the Olympic Peninsula,” said Brian Marrs, senior director of energy and carbon removal at Microsoft, in a statement.
EFM Fund IV’s first investment of 68,000 acres in Washington State’s Olympic Peninsula demonstrates the company’s FSC-certified, climate-smart strategy. The property had been industrially managed for close to a century by the prior owner. EFM’s approach diversifies the revenue streams from forests to include carbon credits and conservation easements alongside revenue from conventional forest products.
EFM Fund IV will initially focus on securing forest properties in the Western U.S., while also exploring other domestic markets where climate-smart management can create a competitive advantage for investors alongside benefits for local communities.
Microsoft’s long-term offtake agreement and investment in Fund IV will help raise the bar for Improved Forest Management (IFM) carbon projects, signaling their potential as scalable and effective climate solutions. IFM is a carbon market methodology that encompasses a suite of sustainable forestry practices aimed at increasing or maintaining forest carbon stocks and improving forest health. These practices include extending the rotation age of trees, reducing the impact of logging operations, and promoting selective harvesting.
By implementing these strategies, IFM projects can not only increase the carbon storage of commercial forests, but also improve biodiversity, enhance water and soil quality, and provide socio-economic benefits to local communities.