Disclosure
Microsoft claims the AI boom has not altered its carbon negative goals
“AI doesn't change our sustainability goals. We're still buying CDR in pursuit of our carbon negative goal. And the AI hasn't really changed that target for us. It just increased the importance of a net zero world still needs to be possible in it, despite the A…”
Assertion Not checkable as stated
Enhanced rock weathering measurement remains too immature for long-term offtakes
“The quantification methods just aren't there yet. So this has been true for enhanced rock weathering for us to date. It's something we're working through right now. Like, is, do we feel good enough about the quantification methods of carbon removal through enh…”
Prediction Not checkable as stated
Direct air capture and marine CDR will not scale before 2030
“What is the next generation of direct air capture look like? What is the next generation of marine CDR look like? Those are pathways that aren't going to be so big on our 20 30 timescale, but really important in 2035 by 20 40.”
Assertion Supported
Microsoft's BTG Pactual transaction is the world's largest carbon removal deal
“BTG is a really exciting one. You know, this is the world's largest carbon removal deal out there.”
Disclosure
Microsoft targets a 50-50 portfolio split for low and high-durability removals
“And so for 2030, for us to meet our goals and for us to build a high quality carbon removal market, we've been targeting for about half of the portfolio to be low durability and half to be medium and high.”
Prediction Not checkable as stated
Reaching gigaton-scale carbon removal will require significant public government procurement
“There will definitely be a moment for government demand. I think when you look at the IPCC numbers for five plus gigatons, five to 10 gigatons of carbon removal, you need public procurement to play an essential role of that.”
Assertion Supported
Microsoft's 2020 carbon removal goals exceeded the entire global market size
“We knew at that time that the market was only in the couple millions of tons annually, and Microsoft schools were several times greater than that, and so for there to be a vibrant market where Microsoft is only buying a share of it, the car removal market need…”
Assertion Not checkable as stated
Microsoft's 2023 Ørsted transaction immediately improved supplier application quality
“Once we were able to structure that deal and we announced that transaction in the start of 2023, it became this huge signal. All of a sudden there was a shift And the quality of applications and the depth of applications that we saw.”
Disclosure
Microsoft mandates strict biomass sourcing rules for bioenergy carbon removal feedstocks
“So one thing that we focused on quite a bit is ensuring we have a broad set of biomass sourcing principles that we worked on with Carbon Direct and is available on our website that identify, okay, we need to make sure that those sources of wood products are tr…”
Disclosure
Microsoft offers short-term contracts for early-stage carbon removal projects
“We vary our contracting in two big ways. So if the project's ready for scale, we will work through a long-term off-tick agreement that's modeled off a PPA. If the project is not ready for scale yet... We'll sign a shorter form agreement.”
Disclosure
Microsoft agrees to purchase 8 million tons of carbon from Chestnut Carbon
“We signed a deal to purchase, I believe, eight million tons of carbon removal from them over a period of time, and they know finance very well.”
Assertion Not checkable as stated
BECCS offers the highest confidence for meaningful high-durability carbon removal volume
“And then in the high durability space, bioenergy with carbon capture and storage has been to the most, the highest confidence in that and the widest range of suppliers that can deliver meaningful volumes on the 20 30 timescale.”
Disclosure
Microsoft evaluates 250 carbon removal applications annually and considers 100 projects
“We see about 250 applications per year, and mostly from, it is probably from 200 plus suppliers, and we're seriously considering over a hundred projects right now in our pipeline.”
Insight
Carbon removal contracts must differentiate between biological and industrial project profiles
“A reforestation project may have a much longer, naturally would want a longer term because if you look at tree growth cycles, you'd have carbon credit generation over a long period of time. Whereas an infrastructure style BEX project kind of needs a fixed, you…”
Disclosure
Microsoft splits CDR procurement between 2030 scale and frontier technologies
“Our CDR The procurement strategy breaks down in sort of two general buckets. They're the pathways that we think can deliver scale by twenty-thirty, and in that case, I think it's more the example that you give, that you need to focus on the proven tech because…”
Disclosure
Microsoft builds carbon removal offtake agreements on standard power purchase frameworks
“Yeah, so the backbone of our offtake agreements is built on a power purchase agreement.”
Disclosure
Microsoft most commonly rejects carbon removal projects for being too early
“The most common way we say no to a project is because it's too early.”
Assertion Supported
BTG Pactual has raised over $500 million for its reforestation fund
“We're in a pay-go relationship with them where we'll buy the credits as they sell them to us, and they're, they've raised, you know, well over half of their billion dollar fund, and on the timber side, they're working with best-in-class FSE standards.”
