Microsoft Expands Climate Strategy with Largest-Ever Soil Carbon Credit Purchase from Indigo Ag

Microsoft partners with Indigo Ag in the largest-ever soil carbon credit deal, promoting regenerative agriculture and scaling nature-based climate solutions.

Microsoft has acquired at least 60,000 credits from Indigo Ag, marking the largest-ever transaction by the company, involving the removal of agricultural carbon, according to ESG news. While the previous purchase was 40,000 credits, with the purchase of new credits, Microsoft now has a total of 100,000 credits.

The credits were initially said to be issued by Climate Action Reserve in the month of April, clearing the way to be recognized in carbon offset registry: this is Indigo Ag's fourth and largest issuance to date.

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Regenerative Agriculture at the Center of Climate Impact

Indigo Ag uses a regenerative farming program to generate credit. Farmers in the United States are asked to participate in the program through sustainable practices which may include reduced tillage, cover cropping, and crop rotation. These practices will help to enhance carbon capture in the soil and also act as environmentally friendly ones.

Brian Marrs, Senior Director of Energy and Carbon Removal at Microsoft said, “We conduct extensive due diligence when selecting projects”, he also added “This effort contributes to measurable climate impact and also supports soil and water health.”

Farmer-Focused Model Drives Adoption

One of the things that differentiates Indigo from other models is the revenue-sharing model it follows. The revenue-sharing model states that 75% of the carbon credit sales are directly allocated to farmers, which helps them keep pace with the transition to climate-smart practices. The company has reported a carbon impact of one million tons through the program so far.

Dean Banks, the CEO of Indogo Ag, said, “This transaction reflects growing interest in soil-based carbon removals and highlights the scale we’ve reached through partnerships with farmers across multiple regions”

Verified Carbon Removal Gains Market Traction

The verification of credits happens under regular monitoring, where they are reported and then verified. The standards are applied with registry-approved methodologies, and it ensures scientific credibility as well as long-term storage of carbon

Companies such as HubSpot and Watershed have also been reported to purchase Indigo-issued credits, which demonstrate an alignment with high-integrity and nature-based climate solutions.

Microsoft’s Multi-Faceted Carbon Strategy

The move of buying the credits blends the technologies such as that of nature-based carbon removal and engineered technologies. The company is advancing sustainable goals as well as powering rural economies.