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Microsoft Is Buying Carbon Credits Generated By Ranchers

February 7, 2024
x min read

Ranch owners might have a big role to play in the future of carbon credits. And now, they have a brand new partner: Microsoft.

What’s happening:

  • Microsoft (NASDAQ: MSFT) has entered into a new purchase agreement with carbon credits company Grassroots Carbon to buy high quality carbon removal credits generated by ranchers

The big idea:

  • Grassroots Carbon partners with ranch owners in the United States to implement regenerative farming practices for carbon removal
  • Farmland has enormous potential to sequester carbon, however most farmland is managed conventionally and depletes soil carbon
  • Carbon that is sequestered into deep root systems has the potential to stay in the soil for thousands of years, acting as a great option for carbon removal from the atmosphere
  • By implementing regenerative farmland practices-such as rotating cattle more frequently to allow the forage on the grazed ground to recover faster and accelerate the process of photosynthesis- ranchers are able to actually capture carbon and draw it deep underground for permanent removal

By the numbers:

  • Grassroots Carbon has over 200,000 acres of land owned by individual ranchers participating in generating carbon credits
  • To date, Grassroots Carbon has paid out over $2M USD to ranch owners for generating high quality carbon removal credits

Going deeper:

  • Shopify, Marathon Oil, Nestle and other companies currently have carbon credit purchase agreements with Grassroots Carbon

The intrigue:

  • This is the first time Microsoft has ever purchased carbon credits that are generated from regeneratively managed grasslands

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