Microsoft signs 15-year nature-based carbon removal deal with Chestnut

Microsoft signed a 15-year agreement with Chestnut Carbon for up to 2.7 million tons of afforestation-based carbon removal certified under the Gold Standard. The long-duration, high-quality removal deal illustrates corporate demand for verified nature-based credits, relevant to Indian project developers and corporates engaging carbon markets.

Chestnut Carbon, a nature-based carbon removal developer founded by Kimmeridge Energy Management, disclosed a multi-year agreement supplying Microsoft with nature-based carbon removal from a US afforestation project, the most extensive afforestation project certified under the Gold Standard to date. The unprecedented 15-year arrangement commits Chestnut to provide 362,000 tons of anticipated carbon removal from its Sustainable Restoration Project Phase I and a cumulative amount up to 2.7 million tons across subsequent phases. Chestnut is expanding capacity toward 500,000 acres and 100 million tons of carbon removal.

The agreement most directly affects Microsoft's carbon-negative goals and signals corporate demand for premium, durable nature-based credits that are additional, verified and Gold Standard-certified. Chestnut assures durability through long-term land conservation, biodiversity promotion and risk mitigation, with broader benefits including ecosystem enhancement, community support and improved air and water quality. The deal is relevant to corporates and carbon-market participants evaluating high-integrity nature-based removal, and to developers structuring afforestation projects that meet the rigorous verification criteria discerning buyers like Microsoft require.

Corporates and project developers should monitor how long-duration agreements, here spanning 15 years, anchor demand and finance for scalable nature-based removal. Indian afforestation and restoration project developers can study the Gold Standard certification and durability commitments, covering long-term conservation, biodiversity and risk mitigation, that underpin premium pricing. Stakeholders should track Chestnut's expansion toward 500,000 acres and 100 million tons of removal capacity, and watch for additional blue-chip partnerships the company signaled it intends to announce.

Key figure — Removal volume: up to 2.7 million tons over a 15-year agreement