Microsoft’s Major Biochar Deal Aims to Offset 1.24M Tonnes CO2

Microsoft has signed the world’s largest biochar carbon removal agreement with Bolivia-based Exomad Green. The 10-year deal will permanently eliminate 1.24 million tonnes of carbon dioxide, equal to the yearly emissions of over 260,000 cars.

This marks a significant step in Microsoft’s push to become carbon negative by 2030 and remove its historical emissions by 2050.

By locking in high-durability carbon removals, Microsoft is demonstrating a long-term commitment to verifiable climate action. The deal is also one of the largest ever in durable carbon dioxide removal (CDR), putting biochar on the map as a serious climate solution.

Why Exomad Green’s Biochar Project Stands Out

Exomad Green’s biochar project offers a powerful, long-term carbon removal solution—while also benefiting local communities and the environment.

Biochar is made by heating biomass without oxygen, locking carbon into a stable form that remains in soil for hundreds of years. It not only traps emissions but also enriches the soil, helping crops grow better with fewer chemicals.

In this project, Exomad Green converts sawmill waste or wood scraps that would normally be burned into biochar.

So, instead of sending harmful smoke into the air, the company puts that carbon to good use by distributing biochar to local farmers. This helps improve soil quality, reduce air pollution, and lower the risk of fires in surrounding areas.

Local Impact with Global Potential

Exomad Green’s approach supports rural and Indigenous communities by giving them access to biochar for use in farming. This helps:

Improve soil fertility and crop productivity
Reduce health risks from open burning
Prevent wildfires caused by unmanaged wood waste

The result is a carbon removal project that benefits both people and the planet.

Setting a New Standard in Carbon Removal Deals

This 10-year agreement isn’t just large—it’s groundbreaking. It brings new industry benchmarks in traceability, transparency, and quality.

Biomass traceability: Exomad runs a Forest Monitoring Center that tracks every batch of biomass used. This ensures all raw materials meet strict sustainability standards.
High product quality: Regular testing guarantees the biochar meets top international standards, making it effective both for carbon storage and soil health.

Exomad’s production process is certified under Puro.earth’s Biochar Methodology, ensuring full compliance with global best practices.

ALSO READ: Microsoft to Purchase 95,000 Biochar Carbon Removal Credits from The Next 150

How Does This Impact Microsoft’s Climate Strategy?

Microsoft aims to be carbon negative by 2030 and to cut all its past carbon emissions by 2050. To achieve this, it also needs reliable ways to remove carbon from the atmosphere. This is one of the main reasons behind the tech giant’s partnership with Exomad Green.

Significantly, this deal adds trusted, long-lasting carbon removal to Microsoft’s climate strategy, using biochar that stores carbon for centuries.

Additionally, it also boosts Microsoft’s image as a leader in corporate sustainability. By choosing verified biochar over less reliable offset methods, the company builds trust with investors, employees, and business partners.

In 2024, Microsoft made up 63% of all carbon dioxide removal (CDR) purchases, securing about 5.1 million metric tons of durable CDR credits.

As rules around carbon reporting become stricter, Microsoft’s clear and high-quality approach to carbon removal gives it a strong advantage.

What Is the Environmental Impact of This Deal?

Removing 1.24 million tonnes of carbon dioxide over ten years is a big step in fighting climate change while also improving land use. The biochar made in this project stores carbon in the soil for hundreds of years.

It also helps reduce harmful smoke and greenhouse gases that would normally come from burning leftover wood in Bolivia’s forests.

When added to soil, biochar brings many benefits. It boosts soil fertility, helps soil hold more water, and supports healthy microbes. This increases crop yields, especially in poor-quality farmland. So, naturally, these gains are helpful for farmers near Exomad’s facilities, giving them stronger harvests and better income.

This deal shows how large-scale carbon removal can work in real life. Thus, extending beyond reducing carbon dioxide, this deal also supports local communities.

More than 250,000 people in Concepción, Riberalta, and nearby areas in Bolivia are expected to benefit from the project’s social and environmental impact.

How This Deal Fits into the Carbon Credit Market

The carbon credit market is changing. It’s moving away from short-term solutions and focusing more on long-lasting carbon removal. Companies and governments now prefer projects that can clearly prove they store carbon for a long time. This shift is driven by global net-zero goals, and biochar is becoming a key part of that future.

By partnering with Exomad Green, Microsoft is backing a trusted, nature-based method for carbon storage. This deal shows that large-scale biochar projects can reduce carbon emissions while also creating jobs, cleaning the air, and helping farmers grow more. These added benefits make the deal more valuable for investors, communities, and regulators.

What the Market Trends Reveal

Experts predict the voluntary carbon credit market will grow to $200 billion by 2030. There’s a growing demand for carbon removal projects that show real, lasting impact. Microsoft’s agreement with Exomad Green is a strong example of this shift.

Biochar stands out in the market because it does more than just cut carbon. It also improves soil health, helping farmers grow better crops. This win-win makes it easier to adopt and lowers the cost of carbon removal over time.

Carbonfuture’s MRV

Buyers also want credits they can trust. Projects that have solid tracking and third-party checks are seen as more reliable. Exomad Green uses Carbonfuture’s MRV+ system to follow every step, from collecting waste to registering the carbon removed. This level of transparency is key for scaling up carbon removal across industries.

SEE MORE: The B iochar Gold Rush: Why Companies Are Scrambling to Lock in Carbon Credits

Is Biochar the Future of Carbon Removal?

Microsoft’s support and Exomad Green’s growing capacity show that biochar is ready for big-scale climate solutions. Their facility in Concepción, Bolivia, plans to remove up to 1 million tonnes of CO₂ per year by 2027. That puts it among the world’s largest carbon removal projects.

If more companies copy this model, biochar could become a regular part of business and land management strategies. As rules around carbon get stricter and the public demands real action, companies will need to show real results.

This partnership sets a strong example. It proves that climate goals can be met while helping local communities and protecting the environment. Thus, Microsoft’s betting on biochar deals shows a major transition in the fight against climate change.