Microsoft Signs Carbon Removal Offtake Deal With India’s Varaha
Climate change is a major challenge today. Big companies are cutting emissions and removing carbon from the air. Microsoft has partnered with Indian startup Varaha to buy carbon removal credits. This deal highlights global investment in carbon removal and shines a light on India’s growing climate tech sector.
About the Deal
- Partnership: Microsoft signs carbon removal offtake agreement with Indian startup Varaha.
- Volume: Microsoft to buy over 100,000 tonnes of CO₂ removal credits by 2029.
- Method: Credits come from converting cotton stalks into biochar, a charcoal-like material that stores carbon long-term in soil.
- Infrastructure: 18 industrial reactors planned across Maharashtra’s cotton belt.
- Impact: Reactors expected to operate 15 years, removing over 2 million tonnes of CO₂ in total.
- Significance: Supports Microsoft’s climate strategy and provides reliable carbon reduction tools.
Microsoft’s Sustainability Strategy
- Goal: Microsoft aims to be carbon negative by 2030, removing more CO₂ than it emits.
- Global Projects: Portfolio includes biochar, engineered carbon capture, and forestry projects worldwide.
- Diversification: Carbon is removed from forests, soil, and industrial processes.
- Energy Challenge: Cloud computing and AI increase emissions, making carbon removal deals critical.
Varaha and India’s Carbon Removal Market
- Company Info: Founded in 2022, works with smallholder farmers in Asia.
- Expertise: Turns agricultural waste into long-term carbon storage using biochar and other methods.
- Global Reach: Supplied carbon credits to major international buyers.
- Other Projects: Includes regenerative agriculture, agroforestry, and enhanced rock weathering.
- India Market: Large crop residue from agriculture produces toxic smoke and CO₂ when burned.
- Benefits: Projects reduce pollution, improve soil health, and create economic incentives for farmers.
Global Implications
- Trend: Big companies now invest in carbon removal in emerging markets, not just wealthy countries.
- Innovation: Long-term deals encourage smaller developers to scale projects and attract investors.
- Local Expertise: India provides new voices and solutions, balancing global climate efforts.
- Impact: Helps expand carbon removal technology and funding worldwide.
Challenges and Considerations
- Verification: Carbon removal credits must be accurate, durable, and verifiable.
- Scale: The thousands of tonnes removed are small compared to the billions of tonnes of global emissions.
- Emission Reduction: Experts warn companies should not rely only on offsets; cutting emissions at the source is essential.
- Future Needs: More projects need to be launched, financed, and monitored to make a global impact.
Conclusion
The partnership between Microsoft and Varaha is more than a business deal. It shows how climate tech and corporate climate goals can work together for shared impact. By investing in carbon removal projects in India, Microsoft is helping expand a nascent market and boost local innovation. Meanwhile, Varaha gains global recognition and the funding it needs to scale important climate work. This kind of collaboration can serve as a model worldwide. When global leaders like Microsoft support climate initiatives in developing regions, they help unlock new pathways to a cleaner and more sustainable future.
FAQS
Microsoft will buy over 100,000 tonnes of carbon removal credits from Indian startup Varaha by 2029.
Varaha converts agricultural waste, like cotton stalks, into biochar, which stores carbon long-term in soil.
It helps Microsoft meet its carbon-negative goals and boosts India’s climate tech sector.
The deal encourages more carbon removal projects in emerging markets and spreads clean technology worldwide.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
