Climate Impact Partners has entered into a new agreement with Terra Natural Capital to provide long-term financing for the Panna afforestation project inf India, from which Microsoft will buy 1.5 million tons of verified carbon removal credits over 30 years, covering 50% of the project’s output. This deal marks Microsoft’s largest carbon removal initiative in the Asia-Pacific region and its first in India.
Combining Expertise and Commitment for Climate Action
Panna afforestation initiative involves the integration of Climate Impact Partners’ experience in project design, Terra Natural Capital’s financial assistance, and Microsoft’s extended purchase commitment. All this partnership has resulted in planting 11.6 million native trees in 20,000 hectares of land, exceeding the size of Washington, D.C. The initiative has already planted more than 1.2 million trees in 100 communities.
Key Benefits of the Project
The Panna afforestation project provides several key benefits to local communities and the environment. Local farmers will earn from carbon credit sales and income generated by selling fruit and medicinal products from planted trees.
The project also promotes sustainable agriculture by offering climate-smart agricultural training to enhance long-term yields. In addition, the project has developed vast water networks like ponds, borewells, and drip irrigation to feed the trees and conserve water. The project further seeks to plant indigenous vegetation to enhance biodiversity as well as bring butterflies and birds to deforested lands.
Sheri Hickok, CEO of Climate Impact Partners, said that Microsoft, known for its bold climate leadership, is supporting the Panna project. She explained that by securing a long-term supply of high-quality carbon credits, the project helps companies like Microsoft meet their climate goals, drive growth in the carbon removal market, and bring benefits to communities most affected by climate change. She also noted that Panna showcases how companies can help scale large-scale carbon removal infrastructure.
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Certified for High-Quality Carbon Removal
The Panna afforestation project follows Verra’s latest Afforestation, Reforestation, and Revegetation Methodology (VM0047) and has been approved for the ICVCM’s Core Carbon Principle (CCP) label. The project received an A rating from BeZero and will be verified under the Climate, Community, and Biodiversity Standard.
