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Microsoft pauses all future carbon removal purchases - report
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Microsoft has paused all of its carbon removal purchases, in a major blow to the industry.
Key facts
- The blow was softened by support in Congress for the sector, with a 2026 federal spending law including more than $116m for carbon removal projects and research
- The company has seen its carbon emissions grow by around 30 percent from its 2020 baseline, due to the high energy demand driven by the AI boom
- In total, the company has purchased more than 45 million tons of carbon removal, with its next-closest challenger, Frontier, a carbon credit-buying consortium that includes the likes of Meta
- The pause comes as hyperscalers such as Microsoft struggle to match their lofty carbon-reduction goals with the growing energy requirements tied to AI growth
Summary
Can the technology deliver durable, verifiable carbon removals at a global scale? The news, first reported by Heat Map, revealed that the hyperscaler has begun informing suppliers and partners that it is suspending all future purchases of credits, with it unclear whether the company will resume such purchases. The news is a major shock to the sector, which has effectively been anchored by Microsoft over recent years. In response to the news, Microsoft denied that it was indefinitely pausing all purchasing. At times they may adjust the pace or volume of their carbon removal procurement as they continue to refine their approach toward sustainability goals.