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Microsoft has taken a significant step toward combating climate change by investing in a large-scale reforestation project in Brazil. The tech giant has partnered with Re.green, a Brazilian ecological restoration startup, to restore degraded rainforest and pastureland, a move aimed at counteracting the environmental impact of its growing AI operations. The deal, valued at an estimated $200 million, will span 25 years and involve the purchase of 3.5 million carbon credits.
Addressing AI’s Environmental Impact
Microsoft’s growing use of artificial intelligence has significantly increased its energy consumption. The expansion of data centers to support AI development has led to a spike in carbon emissions, complicating the company’s pledge to be carbon-negative by 2030. In 2023 alone, Microsoft’s carbon footprint rose by 40 percent compared to 2020, reaching over 17 million metric tons of CO₂.
According to a Financial Times report, to counterbalance this impact Microsoft is turning to nature-based solutions like reforestation, which are more affordable than advanced carbon capture technologies.
Why Brazil?
Brazil’s Amazon and Atlantic forests are among the most biodiverse ecosystems in the world but have suffered significant degradation due to farming and cattle grazing. Re.green aims to restore these lands by planting native species and managing them sustainably, funded through the sale of carbon credits and certified hardwood.
“We consider Microsoft’s carbon removal program to be a global benchmark for high integrity carbon removal and a leader in scientific advancement, validating our trajectory,” said Re.green CEO Thiago Picolo. “This collaboration serves as tangible evidence that this market not only exists but has significant potential for growth in Brazil. We are committed to forging additional partnerships of this caliber.”
This isn’t Microsoft’s first collaboration with Re.green. In May 2024, the two partnered on a similar initiative for 3 million carbon credits over 15 years. The previous agreement saw the company fund the planting of over 10 million native trees across 16,000 hectares of degraded pastureland across Brazil, including in the States of Maranhão and Bahia.
Microsoft is not alone in its pursuit of carbon neutrality. Companies like Google, Amazon, Salesforce, and Meta are also exploring nature-based and technology-driven carbon removal strategies. These ongoing efforts reflect the tech industry’s push to balance innovation with sustainability, as companies strive to meet ambitious climate goals while expanding their AI capabilities.
Read more about how AI is being used to fight climate change or learn about its impact on pollution.