The tech giant's 2.85 million tonne deal with Indigo Ag sends a powerful signal to the voluntary carbon market and U.S. farmers alike.
Microsoft kicked off 2026 with a record-breaking move. The company announced a 12-year agreement with Indigo Ag to purchase 2.85 million soil carbon removal credits, marking one of the largest soil carbon deals ever recorded. This partnership directly supports thousands of American farmers practicing regenerative agriculture across millions of U.S. acres.
The deal builds on a relationship that started small. Microsoft purchased 40,000 tonnes from Indigo in 2024, followed by 60,000 tonnes in 2025. This latest commitment represents a massive leap in scale, reinforcing Microsoft's goal of becoming carbon negative by 2030.
>> In Other News: CF Industries, Trafigura And TFG Marine Sign MOU To Advance Low-Carbon Ammonia For Maritime Decarbonisation
This agreement is one of the first soil carbon deals to feature credits approved under the Integrity Council for the Voluntary Carbon Market's (ICVCM) Core Carbon Principles. That label signals high integrity and rigorous verification, exactly what corporate buyers now demand.
"Microsoft is pleased by Indigo's approach to regenerative agriculture that delivers measurable results through verified credits and payments to growers, while advancing soil carbon science with advanced modeling and academic partnerships."
Phillip Goodman, Director of Carbon Removal at Microsoft
Indigo Ag has issued 927,296 carbon removal credits from its CAR1459 project using the Climate Action Reserve's Soil Enrichment Protocol. The company uses peer-reviewed research, remote sensing, and machine learning to verify results.
>> RELATED: North America's Carbon Removal Year in Review: The Deals, Policies, and Milestones That Shaped 2025
What makes this deal compelling is its direct impact on American agriculture. Indigo works with farmers across eight million acres and has paid them $40 million through its programs. At a time when farmers face economic pressures, this creates meaningful new revenue streams.
"Microsoft's purchase highlights the transformative power of regenerative agriculture to support watersheds, support farming communities, and advance global net-zero goals."
Meredith Reisfield, Senior Director of Policy, Partnerships and Impact at Indigo
Regenerative agriculture practices have been recognized by governments and climate organizations as a valuable carbon removal tool. According to research, these practices have the potential to remove more than 3.5 gigatons of CO2 equivalent annually. The co-benefits extend to improved soil health, better water infiltration, and increased crop resiliency.
A snapshot of the significant soil carbon removal agreement between Microsoft and Indigo Ag, highlighting its scale, reach, and impact.
The Indigo deal is just one piece of Microsoft's aggressive 2026 strategy. The same week, the company announced a 2 million tonne purchase from Rubicon Carbon sourced from an afforestation project in Uganda supporting over 50,000 smallholder farmers.
Microsoft's carbon removal portfolio now spans multiple technologies and approaches:
The Carbon by Indigo program requires farmers to adopt specific practice changes. These include cover cropping, rotating crops, or reducing tillage and input use. Changes in soil carbon are then measured through a combination of soil sampling, farm data collection, and scientific modeling.
Results are independently verified by Climate Action Reserve, which issues the credits after a roughly two-year verification process. Indigo has also added measures to reduce reversal risk throughout the 40-year durability term agreed with Microsoft.
This deal matters beyond its size. With political uncertainty in Washington, corporate demand is proving to be the real driver of carbon removal growth. Microsoft's actions show that the private sector is not waiting for policy clarity.
For the voluntary carbon market, this sets a high bar for 2026. Soil carbon is now a bankable asset class when verified correctly, and ICVCM approval gives buyers the confidence to invest at scale.
The durable carbon removal market crossed the 1 million tonne mark in 2025. Deals like this push the industry from pilot projects into commercial reality.
As more corporations follow Microsoft's lead, regenerative agriculture stands to become a central pillar of global decarbonization. The partnership proves that nature-based solutions can deliver at scale when backed by rigorous verification. The message is clear: investing in farmland is investing in the climate.
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Inside This Issue 🏦 How Carbon Removal Offtakes Are Starting to Unlock Commercial Debt 🌉 California Opens the Door to a Three-Way Carbon Market 🧪 New Material Developed at Oregon State Provides Bo...
Inside This Issue 🍁 Canada Explores Article 6 Path to Global Carbon Buyers 🌲 ARC Bio Demonstrates Canadian Forest Residue Pathway to Sustainable Aviation Fuel 🌾 Business, Forestry and Agriculture ...
Inside This Issue 🌾 ADM's 800,000-Ton Nebraska Bet on Carbon Removal Credits 🏔️ BLM Reaches New Milestone for Southeast Wyoming Carbon Storage Project 🍁 Haffner Energy Receives a €3.2M Firm Order ...
Uniper signs capacity reservation agreement for future SAF supply from Syzygy Plasmonics' NovaSAF™ platform This agreement reflects growing market momentum in biogas to SAF technology and provides...
Anew Climate Expands European Forest Carbon Portfolio Through Ten-Year Agreement with Sweden's EKEN
Partnership brings Swedish improved forest management credits, developed under Verra's VM0045, to Anew's corporate buyers. Anew Climate (Anew), one of the world’s largest developers and marketers ...
Ocean Visions Launches Comprehensive Knowledge Platform on Marine Carbon Dioxide Removal
mCDR Knowledge Platform New public platform connects organizations, technologies, projects, and field trials to provide a more integrated view of the rapidly evolving mCDR landscape "This user-fr...
Reverion builds world-record efficiency solid oxide fuel cell (SOFC) power plants that generate electricity from gas, provide flexible energy storage through reversibility and can be run carbon-ne...
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.