Microsoft has secured funding from Terra Natural Capital to support India’s 20,000-hecare Panna afforestation project. This will remove three million tonnes of carbon and provide significant community benefits over 30 years.
In turn, Microsoft plans to acquire 1.5 million tonnes of verified carbon removal credits over 30 years, accounting for 50% of the project’s output. The Panna afforestation project is Microsoft’s largest carbon removal project in the APAC region and the first in India.
The project combines Climate Impact Partners’ project development expertise, Terra Natural Capital’s finance, and Microsoft’s long-term buyer commitment.
Climate Impact Partners’ project aims to plant 11.6 million mixed native trees across 20,000 hectares of farmer and community lands, larger than Washington DC. So far, over 1.2 million trees have been planted across 100 communities.
Project Benefits:
- Economic Empowerment: Farmers receive share of carbon credit sales and income from tree sales.
- Sustainable Agriculture: Training programs on climate-smart techniques for long-term yield enhancement.
- Water Conservation: Large-scale water infrastructure for tree growth and water conservation.
- Improved Biodiversity: Planting focuses on native species to attract butterfly and bird species to degraded lands.
Sheri Hickok, CEO, Climate Impact Partners commented: “We are incredibly proud that Microsoft, a company that continues to demonstrate bold, climate-responsible leadership, is supporting Panna, a project developed by our expert team. By securing a long-term supply of high-quality carbon credits, this model empowers companies like Microsoft to meet their ambitious climate targets, drive growth in the carbon removal market, and bring benefits to communities most impacted by climate change. Panna exemplifies how companies can help scale large-scale carbon removal infrastructure.”
Brian Marrs, Senior Director Energy Markets, Microsoft said: “At Microsoft, we believe that high-quality, nature-based solutions are vital to addressing climate change. Panna forms an important part of our growing portfolio of carbon removal projects – our first in India and largest in the APAC region. The collaboration with Climate Impact Partners helps to ensure that millions more trees are planted, more carbon is removed from the atmosphere, more jobs are created, and more finance flows back to local communities.”
Erica Vertefeuille, Managing Director, Terra Natural Capital said: “We are excited to work with Climate Impact Partners to realize large-scale nature-based carbon removal projects like Panna. This transaction reflects the power of collaboration between trusted project developers, corporate demand, and innovative finance to unlock climate impact. We recognize that access to project finance is a critical need for the carbon removal market to scale and are committed to providing long-term capital that will accelerate project development and empower corporates to achieve their climate targets.”
