Microsoft Buys Soil Carbon Credits For $228 Million: What Are They And How They Could Change The World

Climate change has become one of the most important concerns over the years. Environmental scientists and corporate giants are looking for new ways to minimise carbon pollution. The key factor that can help in fighting against climate change is soil.  

Recently, US based tech giant Microsoft has signed a major deal to purchase 2.85 million soil carbon credits from a company called Indigo Carbon. This is one of the largest deals regarding carbon credits. The tech giant has not shared the exact price of the deal, which will run for 12 years. However, experts and people familiar with the deal claim that the value of the deal is likely between $60 and $80 per ton of carbon, which calculates the total deal value between $171 million and $228 million. Microsoft is already the world’s biggest buyer of carbon removal credits, and this deal adds to its efforts to become carbon negative. 

The key factor behind this move is Microsoft’s rapidly growing data Centre business. These data centers use a huge amount of power to run cloud services, artificial intelligence, and digital tools. However, the company is regularly investing in clean energy, but still its total emission is rising due to its expansion. Here, soil carbon credits come into the game because it helps the company to balance out some of this pollution. 

The soil carbon credit deal is not limited to Microsoft. This deal portrays a bigger change that how corporate giants are taking the issue of climate change seriously. Many companies are now turning to “nature-based solutions” like forests, wetlands, and soil to store carbon naturally instead of only depending on technology that is built to remove carbon from the air. 

What are soil carbon credits

The soil naturally stores carbon from plants. When plants grow, they take in carbon dioxide from the air and when plants die, some of that carbon goes into the soil. A certain kind of farming pattern can increase how much carbon stays locked underground in the soil. 

The farmers can earn soil carbon credits by using several methods such as no-till farming, planting cover crops, growing trees with crops, and managing grazing better. Next to this other method consists of using fertilisers more carefully and planting more trees. Each carbon credit stands for a measured amount of carbon dioxide that is stored safely in the soil instead of going into the air. 

The experts carefully examine the land and measure how much carbon is already in the soil and monitor the changes in land over time. Some independent auditors also review the data to confirm that carbon is really being stored and is likely to stay there for many years.

Why soil carbon credit is important 

Soil carbon credit is important because soil contains more carbon than the atmosphere itself. If the soil is managed well, it can play a huge role in delaying climate change. For companies like Microsoft, these soil carbon credits are a way to show their seriousness toward climate and environment. 

However, this system is not perfect; measuring soil carbon across large areas is difficult. Soil changes slowly due to which results may vary from place to place. The carbon stored in soil can also be lost due to bad weather, poor farming or land-use changes 

Such a big deal signed by Microsoft portrays that soil is no longer seen as just dirt under feet. It has now turned out an important part of the global fight against climate change.

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