Microsoft has signed its largest carbon removal agreement in the Asia-Pacific region, securing 1.5 million tonnes of carbon removal credits from the Panna afforestation project in Madhya Pradesh, India. The initiative, covering 20,000 hectares, is expected to sequester three million tonnes of CO₂ over three decades while supporting biodiversity and uplifting local communities.
Led by Climate Impact Partners and backed by Terra Natural Capital, the project will plant up to 11.6 million native trees across community and farmer-owned land. Over 1.2 million trees have already been planted in 100 participating communities.
Beyond carbon sequestration, the project integrates economic empowerment, sustainable agriculture, and water conservation. Local farmers will benefit from revenue-sharing on carbon credits and income generated through fruit and medicinal crops. Infrastructure such as ponds, drip irrigation, and borewells will support sustainable land use and boost agricultural resilience.
“This transaction reflects the power of collaboration between trusted project developers, corporate demand, and innovative finance to unlock climate impact,” said Erica Vertefeuille, Managing Director at Terra Natural Capital.
The Panna project forms a key pillar of Microsoft’s strategy to become carbon negative by 2030. It also signals increasing corporate interest in high-quality, nature-based carbon removal efforts, particularly in emerging markets where climate resilience and community development go hand in hand.
