Archive — US — techcrunch
Microsoft taps India’s Varaha for durable carbon removal offtake
Microsoft has partnered with Indian startup Varaha to purchase over 100,000 tons of carbon removal credits through 2029. The initiative transforms cotton crop waste into biochar, promoting carbon storage and combating air pollution. This collaboration is part of Microsoft's strategy to achieve carbon-negative status by 2030, despite rising emissions from its AI and cloud operations.
Key points
- Microsoft signs a deal with Varaha for 100,000 tons of carbon credits over three years.
- The project focuses on converting cotton waste into biochar, which sequesters carbon and reduces air pollution.
- Approximately 40,000-45,000 smallholder farmers in Maharashtra will participate.
- Microsoft aims to be carbon-negative by 2030, despite a 23.4% rise in emissions driven by its cloud and AI businesses.
- Varaha's biochar operations are projected to remove over 2 million tons of CO2 and will include 18 industrial reactors.
- The complexity of scaling with smallholder farmers is highlighted as a challenge compared to U.S. projects.
Why it matters
- In 2023, major corporations increased investments in carbon removal technologies to combat climate change amidst rising emissions from tech operations.
- Microsoft's deal followed similar contracts from other tech giants like Google, reinforcing the trend toward sustainable practices in tech industries.
- Varaha has quickly gained prominence in the biochar market, becoming the world's second-largest player in carbon delivery.
This partnership demonstrates Microsoft’s commitment to sustainability and the growing importance of innovative agricultural methods in the fight against climate change, showcasing how tech companies increasingly focus on carbon removal projects to meet their environmental goals.