Microsoft has significantly expanded its carbon dioxide removal (CDR) commitments, signalling growing momentum in a market seen as essential to meeting global climate targets alongside emissions reductions.
In its 2025 financial year, Microsoft signed agreements to remove 45 million metric tonnes of carbon dioxide with 21 companies worldwide—more than double the volume contracted the previous year and nine times the level secured in 2023. Projects span the US, Europe, Latin America, Asia and Canada.
The company said carbon removal is used to address residual and historical emissions that cannot be eliminated through direct reductions, which remain its primary focus. Microsoft has committed to becoming carbon negative by 2030 and to removing its historical emissions by 2050.
Due to the limited scale of existing carbon markets, Microsoft increasingly contracts directly with project developers at early stages, rather than relying solely on registry-listed credits. The approach is intended to provide forward demand that enables suppliers to secure financing and scale operations, following internal due diligence.
Microsoft’s carbon removal portfolio spans engineered and nature-based approaches, including enhanced rock weathering, soil carbon storage, bioenergy with carbon capture and storage, and ecological restoration. Projects are assessed on durability, net carbon removal and environmental and community impacts.
While Microsoft acknowledged rapid growth in advance purchase commitments, it said global demand will need to reach between seven and nine billion tonnes of carbon dioxide removal annually by 2050, underscoring the scale of the challenge ahead.
